Can I get a loan to buy insurance?

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The so-called policy loan refers to the policyholder using the policy as collateral to apply for a certain amount of loan from the insurance company, and return the loan principal and interest at the end of the contract.
In a certain sense, life insurance policy can be regarded as a valuable document, a financial asset, its value is mainly reflected in the “cash value”, with cash value of the policy can only be policy loans. Such as whole life insurance, whole life insurance, pension insurance, annuity insurance and participating insurance, etc., one year after the insurance policy is usually available for policy loans. The amount of the loan usually does not exceed a certain percentage of the cash value of the policy, and you need to bear a certain amount of interest on the loan.
For short-term accident insurance, medical insurance and term life insurance, there is no loan function because there is no cash value. In addition, loans are usually not available for policies that have had premium waivers, automatic premium advances and claims being filed, depending on the terms and conditions of each insurance company.
How do I get a policy loan? The amount of loan is linked to the cash value of the policy, and the accumulated loan amount generally does not exceed 80% of the cash value.
The interest rate is based on the one-year loan rate announced by the People’s Bank of China. The loan period usually does not exceed 6 months and should be repaid before the next policy anniversary.
The procedure is relatively convenient and simple. Customers can apply in writing to the insurance company after preparing all relevant documents (e.g. ID card, policy, etc.). The loan amount usually takes only 3 to 5 working days to arrive.
One of the major benefits of a policy loan is that you get a cash flow without surrendering the policy, and all the protection functions, returns, dividends and other functions of the policy will not be affected during the loan period.
Policy loans revitalize capital and save interest
There are two main modes of domestic policy pledge loans: one is that the policyholder pledges the policy directly to the insurance company and obtains the loan directly from the insurance company; the other is that the policyholder pledges the policy to the bank and the bank approves and issues the loan to the borrower.
Generally speaking, insurance companies provide policy loans with convenient procedures, lower interest rates, and daily interest calculations.