Policy loans, that's it.
Insurance, as one of the troika in the financial field, I believe that most of my friends have had the experience of buying insurance. As for insurance, you may only understand the functions of economic compensation, financial intermediation and social management, but ignore that insurance policies can also be used for loan financing! Today I will talk to you about policy loans.
What is a policy mortgage?
Policy loan, as its name implies, is that the insured mortgages the policy in his hand to the bank and obtains a loan from the latter. Because it is a mortgage, not all policies can be used for policy loans. Only those policies with cash value can be used for policy loans.
What kind of insurance policy can I borrow?
Although the loan method of insurance policy is convenient and quick, I remind you that not all insurance policies can be used to pledge loans. Under normal circumstances, only life insurance contracts with savings nature such as life insurance, dividend insurance, endowment insurance and annuity insurance can apply for policy loans. Accident insurance, health insurance, investment-linked insurance, universal life insurance and other insurances do not have the function of mortgage loan.
3. How to determine the amount of policy mortgage loan?
Under normal circumstances, the amount of the policy loan will not exceed 80% of the cash value of the policy, and the cash value of the policy is related to the specific types of insurance, the insurance premium paid and the insurance period. If the accumulated premium is more and the insurance period is longer, the amount of the policy loan will be higher. Under normal circumstances, 70%-80% of the premium paid can be loaned before the premium is paid in full; If all the premiums are paid, the loan amount is 70%-80% of the insurance amount of the current year (note: this insurance amount will increase with the policy loan, not the insurance amount at the time of initial insurance).
What are the benefits of policy mortgage?
1. Rights protection is not affected.
As long as the insured does not surrender, even during the loan period, the policy is still valid, and the borrower can still enjoy the insurance protection, and will not be unable to enjoy the protection because of the loan behavior. Moreover, compared with the way of surrender, the policy loan can not only avoid the related expenses of surrender, but also enjoy the protection rights.
2. The application process is convenient
Compared with other mortgage guarantee methods, the application process of policy loan is much simpler. The insured only needs to bring the insurance policy, valid identification and written consent statement of the insured to the relevant lending institution to apply for a loan.
3. Low interest rates
Compared with pure credit loan, because the policy has a certain cash value and the lending institution is more secure, the interest rate of the policy loan will be relatively low, which will not bring excessive loan burden and repayment pressure to the borrower.
Verb (abbreviation of verb) Policy mortgage loan application conditions
1. The annual payment of the policy is more than 2,400 yuan.
This policy has been implemented for more than half a year.
3. The insurance policy has a certain cash value.
4. The lender's credit information is good.
5. The lender is a legal citizen aged 18-65 with a stable address.
6. Other conditions stipulated by the bank.
The process of policy mortgage loan with intransitive verb
1. The lender prepares relevant materials, fills in the loan application form at the loan bank and submits the materials;
2. Upon receipt of the application, the loan bank will confirm and review the information;
3. After approval, the lending bank contacts the lender and signs relevant contracts;
4. For bank loans, the lender shall fulfill the repayment obligations.
Usually you can receive the loan amount within 3 to 6 working days.
Policy loan is indeed a very good loan product, especially for friends who need funds badly. If you happen to have a qualified policy, it is also possible to apply for a policy loan.