At present, the loan of the policy is based on 80% of the cash value of the policy, and the loan does not affect the policy rights. Insurance can be loaned. Simply put, it is to apply for a loan from an insurance company with the insurance policy as collateral. The longest term of each loan is 6 months, and you can go to the insurance company to pay interest once every six months.
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To apply for a policy loan, the following conditions are required:
1. The applicant should be between 18-60 years old and be a legal citizen of Chinese mainland;
2. The applicant has a fixed residence and a stable job, and has the ability to repay;
3. The applicant's credit information is good and there is no bad credit behavior;
4. The insurance policy held by the insured must have cash value and have been insured for more than two years;
5. The policy loan must be applied in person and cannot be handled by others.
1. How to apply for a policy loan?
Compared with other loan methods, the procedure of policy loan is relatively simple, usually without guarantor, collateral audit and income proof, and the loan speed is faster.
Under normal circumstances, when the insured goes to the insurance company or bank to handle the policy loan business, he needs to bring the insurance policy, insurance payment invoice, ID card, passbook and other materials. It should be noted that this business must be signed by the insured. If the insured cannot be present in person, he may also issue a written statement to the insured in advance agreeing to the loan application.
For friends who need loans, Bian Xiao suggested that you confirm the relevant information with insurance companies and banks in advance.
2. Can you still make claims during the policy loan period?
During the policy loan period, if an insurance accident occurs, will the insurance company still pay the claim?
In fact, the policy is still valid during the pledge period. If an insurance accident occurs during the loan period, the insurance company still has to pay the claim, but before paying the claim, it needs to deduct the principal and interest owed.
Three. Matters needing attention in policy loans
Policy loans have a short term and generally need to be repaid within 6 months. If the borrower fails to repay the loan in time as agreed in the contract, it will not only pay the penalty interest, but also the policy will be permanently invalid when the principal and interest of the loan reach the surrender amount.
Therefore, although the policy loan can alleviate the short-term capital demand of the insured, Bian Xiao still suggests that you handle this business cautiously. If you apply for a policy loan, you must repay it on time, otherwise you will face triple losses such as penalty interest, invalid policy and poor credit information.