Nowadays, many people will buy one or more commercial insurances for themselves and their families. Policies with high cash value can be used as mortgage loans. Not only is the amount higher than the credit loan, but the interest is only about 5%. What about the repayment method of the policy loan? Monthly repayment? Today we will briefly introduce the relevant content.

I. Introduction of Policy Loans

Policy loans are mainly pledged by the cash value of the policy. The loan amount is related to the policy year, the age of the insured, the amount of compensation and the cash value. Only some eligible policies can be applied, such as long-term life insurance with savings nature. After one year of insurance, the higher the payment, the higher the cash value, which is also related to the regulations of insurance companies.

2. Is the policy loan repaid monthly?

Generally, it is repaid in installments, ranging from three months to one year, usually half a year, and repayment is required every month. For example, Ping An Bank's policy loan stipulates that the loan period should not exceed 6 months, and the value date is the date when the funds arrive.

Third, the repayment method of the policy loan

1, normal repayment

Repayment by installments must be made in time before the monthly repayment date, and there is no grace period. If it exceeds the time limit, it will be overdue, so be sure to repay it on time.

2. Advance payment

Most policy loans support prepayment, as long as you apply to insurance companies or banking institutions. Policy loans can also be partially repaid, which requires the unanimous consent of the insured, the insured and the lending institution. After partial repayment, a new loan contract is formed, and the remaining principal is re-phased. Once the new loan takes effect, the old loan will be terminated.