Can the loan be used to purchase insurance?

Loans can be used to purchase insurance. Generally speaking, insurance companies will not investigate where the premiums for insurance products come from.

However, after all, a loan is a loan from someone else, and you still have to use your own money to repay the principal and interest to the creditor within the agreed period.

Before the article begins, friends who are not familiar with insurance may wish to read this popular science article: Before buying insurance, you must first understand these key knowledge points!

Many friends will have difficulty with the premium when purchasing insurance. For example, the questioner thought of using a loan to purchase insurance.

The schoolmate suggested that instead of investing in high premiums and causing an excessive financial burden on oneself, it is better to reduce the payment pressure to a certain extent by extending the payment period and reducing the insured amount.

First of all, common payment terms include single payment and annual payment. Single payment means paying the premium in one go, and annual payment means paying annually, such as 5 years, 10 years, 20 years, etc. .

When other insurance conditions are fixed, the longer the payment period, the less premiums you have to pay each year. Therefore, if your income is stable, it is best to choose annual payment and try to extend the payment period.

If you still don’t know how to choose the payment period, you can refer to this article: How to choose the payment period so as not to lose money?

Secondly, for most insurance products, consumers can freely choose the insurance amount. If other insurance conditions are fixed, the higher the insurance amount, the higher the premium will be.

Although the insurance amount is sufficient and the insured enjoys sufficient protection, blind pursuit of high insurance amount will lead to excessive payment pressure and affect the quality of daily life. It is best to choose the appropriate amount of insurance.

Then the question is, how to choose the amount of insurance for different types of insurance? This article tells you: How much insurance coverage is appropriate? Talk about the secrets inside

Hope to adopt it

The same account on the whole network: Xueba talks about insurance, welcome to search

Can I get a loan from an insurance policy?

Yes. Policy loans are available as long as there is cash value on the policy.

For those customers who need it in the short term, policy loans are a good choice. The main advantages are:

First, when the policy is valid, the customer can You can continue to enjoy the insurance protection agreed in the policy during the loan period. Compared with surrendering the policy, policyholders do not need to worry about losing coverage due to surrendering the policy, and can avoid surrender fees and losses.

Second, the policy loan application method is simple. The policy holder only needs to bring the policy, valid identity certificate, and the insured's written statement agreeing to the loan application to the insurance company in person. Taiping Life stated that as long as the lender brings all the materials, the insurance company can complete the business on the same day.

Extended information:

Legal Risk Analysis of Life Insurance Policy Pledge

Life insurance policies basically meet the requirements for pledge: Life insurance policies are based on personal insurance contracts The creditor's rights, that is, the right to claim. Whether this right can become the subject of pledge depends on whether it is property, whether its value can be realized through market transactions, and whether the possession can be publicized.

The subject matter of the pledge of the life insurance policy is fictitious property and should belong to "other property rights that may be pledged as prescribed by laws and administrative regulations" as stipulated in Article 223 (7) of the "Property Law" , can be used as the subject matter of pledge.

Life insurance policies have cash value and returnability, and the subject of their pledge is the right to request the insurer to pay the corresponding price, which is a property right in nature.