The policy can be mortgaged. That is, policy pledge loan refers to a financing method in which the insured directly mortgages the policy he holds to the loan company and obtains corresponding funds according to a certain proportion of the cash value of the policy. According to bankers and insurance professionals, only life insurance policies can be used as policy mortgage loans. This is because pledge is a form of creditor's rights guarantee, and the debtor transfers the possession of his property to the creditor as the guarantee of creditor's rights. When the debtor fails to perform the debt, the creditor can conveniently discount, sell or auction the pledge to realize his creditor's rights. It can be seen that whether the policy can be pledged depends on the exchange value of the pledged goods. At present, life insurance contracts with savings nature, such as life insurance, investment dividend insurance and endowment insurance, have a certain cash value as long as the insured pays more than 1 year. At this time, no matter whether the insurer has an insurance accident or not, no matter whether the policy is valid or not, the accumulated cash value will not be lost, and the insured can ask the insurance company to return the cash value at any time to realize the creditor's right. In the property insurance contract, the insured's claim for insurance money depends on whether the insurance accident occurs or not. If there is no insurance accident, the insured can't get the insurance money. Therefore, the property insurance policy itself has no cash value and cannot be used as a pledge certificate. In addition, the policy mortgage loan is conditional. Some long-term life insurance clauses stipulate that only when the insured has paid the insurance premium for more than two years and the insurance period has reached two years can he apply for a pledge loan with the insurance policy. There are also restrictions on the time and amount of policy loans. The policy loan time is short, generally only six months at most, and the loan amount cannot exceed a certain proportion of the cash value of the policy at that time. Every insurance company has different regulations on this ratio. At present, the loan amount of policy pledge loan is determined according to the cash value of the policy, which generally does not exceed 80% of the cash value of the policy. To sum up, experts suggest that policy loans should be carefully considered before.

Further reading: How to buy insurance, which is good, and teach you how to avoid these "pits" of insurance.