Modern people have a very strong sense of insurance. In addition to five insurances and one gold, they also buy commercial insurance for themselves or their families, many of which are very high. When you need money urgently, you can choose a policy loan for emergency. Many people don't know, in fact, some insurance policies can't be loaned. Let's briefly introduce it today.
I. Types of loans that cannot be applied for by insurance policies
1, short-term accident insurance and health insurance
Under normal circumstances, such policies have no cash value, and banks stipulate that policies without cash value cannot be loaned.
2. Medical insurance, etc.
Medical insurance and property insurance do not have the conditions for mortgage and cannot apply for policy loans.
3. Insurance with investment function
An investment policy can accumulate considerable cash value in a short time, but because its value fluctuates with the price of the investment unit, it is impossible to make a policy loan.
Generally speaking, banks recognize that long-term life insurance has the nature of saving. For example: old-age security and old-age insurance. This kind of policy begins to have cash value after one year of insurance, and the longer the payment time, the higher the accumulated cash value.
2. Can I apply for a policy loan with bad credit?
Generally speaking, if the credit information is slightly bad, overdue and settled, you can apply for a policy loan. However, if the credit record is too serious, the number of defaults is too many, and the amount exceeds the tolerance of the bank, it is still difficult.
To sum up, policy loan is a kind of credit loan. Whether you use a credit card or a loan, everyone should repay the loan on time and maintain a good credit record.
What is a policy loan? How to repay the policy loan?
Maybe you have bought various types of insurance, but do you know that your insurance policy can also be used for loans? Let's take a look at what a policy loan is and how to repay it.
The so-called policy loan refers to a loan method in which the insured mortgages the policy he holds to the insurance company and obtains funds according to a certain proportion of the cash value of the policy. Since the customer's insurance protection is not affected in this process, the policy is still valid. This is also one of the main reasons why many people choose policy loans. After all, you can get a loan in this way without losing your insurance rights.
Because there are many types of insurance, the types of policy loans can also be divided into many types. Let me briefly list some of them:
1. Loans obtained from insurance companies are guaranteed by the cash value of life insurance policies.
The one-time loanable amount of such loans depends on the effective year of the policy; The age of the insured and the amount of compensation for death when the policy is issued. Although some insurance policies usually only allow borrowing at the expected annualized interest rate linked to the money market, the expected annualized interest rate of such loans to policy holders is often lower than the expected annualized interest rate of the market. If the insured fails to repay the loan, the principal and interest of the loan will be deducted from the death compensation in the life insurance policy. Under normal circumstances, policy loans can only be targeted at policies with' cash value'. Long-term life insurance with saving nature, such as endowment insurance, whole life insurance, endowment insurance, universal insurance and dividend insurance, will have cash value after one year of insurance, and the longer the payment time, the higher the accumulated cash value. These policies can usually be used for policy loans, but the specific situation depends on the specific terms in the insurance contract.
2. Short-term accident and health insurance.
Because there is no cash value, or the cash value is very low, such policies cannot be used for policy loans. Although cash value is an important factor in evaluating whether a policy can be loaned, it is not only the policy with high cash value that can be loaned. The most typical example is linked insurance. As an insurance with investment function, investment-linked insurance with a premium of more than 100,000 yuan is not uncommon, and it will soon accumulate considerable cash value. Although investment-linked insurance has cash value, it cannot be determined because its value fluctuates with the price of the investment unit, so it is generally impossible to make a policy loan.
In addition, we are most concerned about the loan amount, time and expected annualized interest rate, and also briefly talk about:
Similar to general pledge, the reference index of policy loan amount is the "cash value" of the policy. According to the regulations, the policy loan ceiling is calculated according to a certain proportion of the cash value of the policy, and each company is different. For example, the regulations of Pacific, China Life and Taiping Life are 80%; AIA and Allianz are 70%. Since the specifications of policy loans are formulated by the CIRC, there is little difference among major insurance companies.
The policy loan time is short, generally 6 months. There are also companies that can automatically renew their loans after maturity.
If you have a loan, you must pay it back. How to repay the policy loan? Is the insurance contract still valid after repayment?
It is understood that customers can choose to repay all or part of the repayment in one lump sum. If the customer fails to repay the loan and loan interest when the loan expires, the owed policy loan and accumulated loan interest constitute a new policy loan, and the interest is calculated according to the expected annualized interest rate of the policy loan on the next day of the maturity date. If the customer partially repays the loan, the repayment will be used to repay the accumulated interest first, and then to repay the loan principal. If the borrower fails to perform the debt at maturity, the insurance contract will be terminated when the loan principal and interest are lower than a certain proportion of the cash value of the policy.
The following are the things you need to pay attention to when repaying:
1. The premise of the policy loan is that it has been insured for more than two years and the insurance account has cash value. Usually, the maximum loan amount provided by insurance companies is 70%-80% of the cash value of customers' policies.
2. Not all insurance policies can be loaned. Enterprises and individuals who have purchased insurance policies with savings nature such as life insurance, dividend insurance, endowment insurance and annuity insurance can make corresponding loans by way of policy pledge according to the cash value of the purchased insurance.
3. The insurance policy is only suitable for short-term use, not suitable for high-risk investments such as stocks.
4. Policy loans must be applied by the applicant or the insured, and may not be entrusted; Insurance policies that have been exempted from premium cannot be handled, which is more common in children's insurance
Which platforms can make policy loans?
1. Cai Xi policy loan, Ping An policy loan, Heng Chang policy loan, you and me policy loan.
2. Policy loans are loans obtained from insurance companies with the cash value of life insurance policies as the guarantee. The one-time loanable amount of such loans depends on the effective year of the policy; The age of the insured and the amount of compensation for death when the policy is issued.
I. Basic types
1. Policy loans Short-term accident insurance and health insurance, because there is no cash value or the cash value is very low, such policies cannot be used for policy loans. Although cash value is an important factor in evaluating whether a policy can be loaned, it is not only the policy with high cash value that can be loaned. The most typical example is linked insurance.
2. As an investment insurance, investment-linked insurance with premium above100000 is not uncommon, and it will soon accumulate considerable cash value. "Although investment-linked insurance has cash value, it is impossible to make a policy loan because the value fluctuates with the price of the investment unit."
Second, the fixed interest rate
Policy lenders are most concerned about the amount, time and interest rate. Similar to general pledge, the reference index of policy loan amount is the "cash value" of the policy. According to the regulations, the policy loan ceiling is calculated according to a certain proportion of the cash value of the policy, and each company is different. For example, the regulations of Pacific, China Life and Taiping Life are 80%; AIA and Allianz are 70%. A related person from Allianz told the Financial Weekly reporter: "Since the specifications of policy loans are formulated by the China Insurance Regulatory Commission, there is not much difference among major insurance companies." The policy loan time is short, generally 6 months. There are also companies that can automatically renew their loans after maturity.
Third, the repayment type.
When repaying, customers can choose to repay in full or in part at one time. If the customer fails to repay the loan and loan interest when the loan expires, the owed policy loan and accumulated loan interest constitute a new policy loan, and the interest is calculated according to the policy loan interest rate on the next day of the maturity date. If the customer partially repays the loan, the repayment will be used to repay the accumulated interest first, and then to repay the loan principal. If the borrower fails to perform the debt at maturity, the insurance contract will be terminated when the loan principal and interest are lower than a certain proportion of the cash value of the policy.
1. One-time repayment
If the customer fails to repay the loan and loan interest when the loan expires, the owed policy loan and accumulated loan interest constitute a new policy loan, and the interest is calculated according to the policy loan interest rate on the next day of the maturity date. If the customer partially repays the loan, the repayment will be used to repay the accumulated interest first, and then to repay the loan principal. If the borrower fails to perform the debt at maturity, the insurance contract will be terminated when the loan principal and interest are lower than a certain proportion of the cash value of the policy.
2. Partial repayment
If the customer partially repays the loan, the repayment will be used to repay the accumulated interest first, and then to repay the loan principal. If the borrower fails to perform the debt at maturity, the insurance contract will be terminated when the loan principal and interest are lower than a certain proportion of the cash value of the policy.
Can the policy be loaned?
Yes, you can. As long as it is a policy with cash value, it can provide policy loans.
For customers who need it in the short term, policy loan is a good choice, and its advantages mainly include:
First, when the policy is valid, the customer can continue to enjoy the insurance protection stipulated in the policy during the loan period. Compared with surrender, the insured need not worry about losing protection due to surrender, and can also avoid the loss of surrender fees.
Second, the policy loan processing method is simple. The insured only needs to bring the policy, valid identity certificate and written consent of the insured to apply for the loan to the insurance company in person. Taiping Life said that as long as the lender brings all the materials, the insurance company can complete the business on the same day.
Extended data:
Legal Risk Analysis of Life Insurance Policy Pledge
Life insurance policies basically have the elements of pledge: life insurance policies are claims based on life insurance contracts, that is, claims. Whether this right can be pledged depends on whether it is property, whether it can realize its value through market transactions and whether it can realize possession publicity.
The pledge object of life insurance policy is fictitious property, which belongs to "other property rights that can be pledged according to laws and administrative regulations" stipulated in Item (7) of Article 223 of the Property Law, and can be used as the pledge object.
Life insurance policy has cash value and returnability, and its pledge object is the right to ask the insurer to pay the corresponding price, which belongs to property right in nature.