Policy loan is a loan form in which the insured applies for a loan from the insurance company within the validity period of the insurance contract, and the loan amount can be equivalent to 80% of the cash value of the policy at that time. Compared with other loan methods, the policy loan procedure is very simple. If the borrower fails to perform the debt at maturity, the insurance company has the right to terminate the insurance contract when the loan principal and interest accumulate to the cash value of surrender.
Personal insurance is divided into two categories: one is medical expense insurance and accidental injury insurance contract, which belongs to loss compensation contract and cannot be used as pledge like property insurance contract; The other is life insurance contracts such as endowment insurance, dividend insurance and annuity insurance with savings function. As long as the insured pays the premium for more than one year, life insurance policies have a certain cash value, and such policies can be used as collateral.