Reasons and types of insurance policies
There are two kinds of insurance policies, one is the pledge loan that insurance companies can make themselves, and the other is the personal credit loan based on insurance policies.
1. Pledge type
It refers to a personal pledge loan business in which the borrower takes the unexpired insurance policy as pledge, obtains the loan amount from the insurance company according to a certain proportion of the cash value of the insurance policy, and repays the loan principal and interest on schedule. In the process of pledge loan, the insurance protection of the customer is not affected, so the policy is still valid.
2. Credit type
A loan is a personal credit policy loan handled by a financial institution according to your personal life insurance policy and your personal credit qualification. In fact, to put it bluntly, as the carrier and threshold qualification of loans, insurance policies, like academic qualifications, are stepping stones to work. The policy is not pledged, only a threshold is determined, and the key point is to check whether the credit is up to standard.
What kind of insurance policies are eligible for loans?
1. Pledge type
Not all insurance policies can pledge loans. Only life insurance contracts, annuity insurance and dividend insurance with savings nature can apply for policy loans. According to the cash value of the insurance you buy, make a loan with the corresponding amount in the form of policy pledge. Usually, the maximum loan amount provided by insurance companies is 70%-80% of the cash value of customers' policies.
2. Credit type
Commercial life insurance policies that can be used to apply for loans are dividend-paying, traditional and universal. The total payment period is more than 3 years, the policy is valid for half a year, and the annual premium is more than 2,400 yuan. It can be used as a qualification to apply for personal credit loans from banks and financial institutions. This kind of loan products will not affect the rights and interests of the policy, but only use the policy as a financial qualification to extend the credit line. The longer the policy takes effect, the higher the annual premium paid by the policy and the higher the loanable amount. (Maximum amount: 200,000 yuan) One policy can apply for policy loan products from multiple banks or financial institutions at the same time, as long as the borrower's income can support the monthly repayment.
supplement
Most health insurance, short-term accident insurance and medical insurance cannot apply for policy loans because they have no cash value and no mortgage conditions.
In addition, relevant requirements for credit policy loans:
1. The policy has been in effect for 6 months, but most of them require the policy to meet the payment for 3 times within 2 years.
2. The annual premium of the policy is more than 2,400.
3. The total payment period of the policy is greater than or equal to 3 years, and 1 year is not recognized.
4. The cycle is generally 3 years/the maximum limit is 20w.
5. The insurance policy that has paid the premium period cannot be loaned. Within the validity period of the insurance policy, it cannot be paid off. Universal insurance policies can make some financial loans, but wholesale policies can't.
6. The interest rate is subject to the customer's qualification (range 0.55- 1. 12).
7. Only equal principal and interest
Can be used for policy loans, limited to long-term insurance, that is, savings insurance, which takes 3 years to pay 5 years, 10 years, and the longest is 30 years! The maximum amount of general policy loans is 200,000 yuan. An insurance policy is a proof of assets. The longer the payment time, the higher the annual fee and the higher the approved amount.
Related Q&A: How to borrow from China Life Insurance Policy The process of borrowing from China Life Insurance Policy is as follows: First, open the China Life Insurance APP, click on the policy at the bottom of the page to find the loanable policy, then open the policy rights, click on the loan, and enter the current loanable (RMB). Read and agree to the loan instructions, and then click Next. Perform face verification and SMS verification code as required, and click Next. The loan application has been submitted. Click to view the progress. You can check the progress if the loan is successful. Insurance provides us with protection. The cash value of insurance can be used for borrowing, and the annualized interest rate is very low, which is suitable for temporary turnover. However, it should be noted that intermediate authorization should be obtained before borrowing. Moreover, the policy loan can be repaid in advance, and there is no handling fee. Operating environment: oppo Reno 5pro v11.1China life app version 2.4. 1: 1. How many times can I borrow a loan from China life insurance policy? 1. When the original loan is not settled, a policy can only be borrowed once, and only once at the same time. For example: I have a policy of 6.5438+10,000 yuan, and the loan that this policy can apply for is 30,000 yuan. If the loan amount is 1 000 yuan when I apply for pledge with this policy for the first time, then the policy can't be borrowed again until the loan is returned at maturity, and I can only borrow it once. 2. The original loan has been settled, and multiple loans can be made. If the original loan has been settled, take the above example: I used a policy loan of 1 000 yuan, and a month later, I made a fortune again, so I repaid the loan and the policy was released from pledge. If you still want a loan the next day, you can continue to apply for a loan. Similarly, under the condition that the original loan has been settled, a policy can be loaned multiple times. As can be seen from the above example, there is still a difference between policy loans and bank loans. Banks can apply for revolving loans once and withdraw them many times. But policy loans are not allowed. 2. Policy loan notes 1. Lending is not the function of all contracts, it depends on whether it is in your terms. For example, China Life Hongtai's old-age security (dividend-sharing) has no borrowing function. If there is a loan clause in the terms, it means that it can be borrowed. 2. The maximum amount of the loan. It depends on how many years you bought it, mainly according to the new insurance law, that is, before 2009 10. The maximum loan amount is 70% of the cash value, followed by 80% of the cash value. 3. The interest rate of the loan. Every company is different. Before 20 1 1, China Life was 5.56%, and after 20 1 1, it was 6.56%. This is floating, mainly because the company is formulated under the premise of legal compliance. 4. Borrowing time. China Life's longest loan period is 6 months. This does not mean that it can only be borrowed for six months, but only once every six months. The trial calculation of your loan is also based on this time. If you can't repay after 6 months, you can continue to accumulate loans without any formalities. Cumulative square test: loan principal +6 months loan interest = refinancing principal. Then calculate the loan interest with the new loan principal until the cash value is not enough to pay the loan. Operating environment: oppo Reno 5pro v11.1China life app version 2.4. 1.