Insurance Tips 03 – How do I get a policy loan?

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I. What is a policy loan?
Simply put, it is to take the policy you own and apply for a loan from the insurance company and pay a certain amount of interest.

Second, how much can I borrow?
In general, the loan amount cannot be higher than 80% of the cash value of the policy. It depends on the terms and conditions.

Third, how long can I borrow?
Each term is generally 6 months. At the end of the term, the principal and interest will be repaid together. Some insurance companies only require the interest to be repaid and the principal can continue to be used. If you fail to repay the interest upon maturity, the interest will be credited to the principal as a new loan and the next interest on the loan will begin to be calculated.

IV. What is the interest rate?
Interest rates vary from company to company and from product to product. The interest rate of the policy loan can be found on the official website of the insurance company, or you can write to me privately.

V. Which policies can be loaned?
Simply put, all kinds of long-term insurance can be. If you have a long payment time and high premiums, naturally the cash value accumulated in the policy is high and the loan amount is high.

Sixth, written in the end
If there is a need for capital turnover, you can use the policy with high cash value on hand to take out a loan, without any collateral, no anti-lock procedure process, and the policy benefits are not affected, you just need to repay the loan on time or pay the interest on it, for some people, it is a loan method worth considering. And the interest rate is much lower than XX loan or XX borrowing.