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Policy pledge to provide small loans to new ways

in this environment of monetary tightening, "borrows" is by no means an easy task. Mortgage to tighten control, apparently wants to obtain mortgage loans from the Bank will not be easy; for the banks pushing the unsecured loans, borrowing money is not difficult, but high interest rates is scary. When you borrow money to worry about, might as well count of home insurance policies, perhaps your insurance policy or mortgage, from the hands of insurance companies borrow money at low interest rates.

cash value insurance policy loans

a policy loan, as the name suggests is the insured will be mortgaged to the policy in the hands of insurance companies, from the latter to obtain loans. Because the mortgage, so not all insurance policies can be policy loans – only those who have the cash value of the policy is available for loan.

like ordinary policyholders to purchase accident insurance, term life insurance and other insurance types of consumption, just pure consumer products do not have investment property and, therefore, has no cash value and cannot be used in a policy loan. In General, only life insurance with saving, profit sharing insurance, universal insurance and pension insurance, annuity insurance policy could apply for loans from insurance companies, and investment-linked insurance because fluctuations, are not available for loan.

got my hands on the mortgage policies, may apply to the insurance company for the mortgage. Different insurance companies for details of mortgages will be slightly different, a case study of Taiping life, its not 70% above the cash value of the loan, the maximum loan period is 6 months, current loan rates at 6.4%, usually three business days after applying for loans can get funding.

policy loan Vs surrender claim

desperate for money in hand, past many policyholders choose surrender or withdrawal methods to cash, compared with the loan, although this method can get 100% money back, but it is at the expense of security.

loans funded through insurance policies and protection does not affect the policy itself. If insurance accident occurs after the policy loan, you can still file a claim, the insurance company will be paid after deduction of loan principal and interest corresponding to the insurance does not affect the insurance limitations. This is clearly a surrender or withdrawal can not be compared.

of course, the insurance policy is required to pay interest on the loans. In the applicant's view, total interest paid is not a comfortable thing, so choose the withdrawal, preferring to run out of money in the form of additional premiums to buy them back after insurance. In fact, such an approach, just ignore the withdrawal or renewal of an additional premium cost. Universal insurance rates lower, for example, each time the additional premium will be charged the initial cost of 2%, withdrawn and less than five years prior, you also need to pay the fees range from $ 1-5%. Even if calculated according to the minimum 1%, 1%+2%=3%, and half-year loan interest rate 6.4% ÷ 2=3.2% have similar, not to mention the latter without sacrificing security, while lending on the reduced real interest rates also dropped, quite unlike the withdrawal has a fixed cost.

of course, if the insured needs to use funds for more than 6 months, so withdrawal is no way way, but then best to insure themselves on a short-term life insurance or accident insurance, reduced to make up for the shortfall.

rapid loan growth

with credit tightening, have an increasing number of insured persons who are aware of policy loan value of this new financing channels. Follow is the rapid growth of insurance-related business.

currently insurance for the big three have been listed in the financial statements are disclosed in the size of the loan. On absolute,, Chinese life natural is giant no PA, first half of policy pledge loan total 28.969 billion yuan, this with market share of first bit is commensurate of; to on the explosive most strong of, is number China peace, although first half of policy loan only for 11.824 billion yuan, insufficient Chinese life of half, but its compared growth speed is up to 40.24%, is country life 20.82% growth of near twice times. China Pacific insurance, undoubtedly is the most conservative of the three, policy lending in the first half but 3.097 billion yuan, less than a fraction of China life. But judging from the growth, 34.24% growth also should not be underestimated.

visible, whether it is already working the ping an and China life insurance policy loan for many years, also was recently slammed head-on Pacific are experiencing rapid loan growth.