- Customized Loan Amount
- Lower interest rate
- Flexible repayment terms
Loan against Life Insurance Policy
Loans against life insurance policies are becoming quite popular nowadays, as they are offered at a much lower interest rate equal to your policy's surrender value. However, the rate of interest depends on the insurer. But why is taking a loan against a life insurance policy much preferable?
Since it provides.
- Lower rate of interest.
- Flexible repayment terms
- Life cover continuance.
In the following article, you will be familiar with all the para-meters that how loan against life insurance works?
How can I get a loan against my life insurance policy?
For taking a Loan against your life insurance company, one should follow the below steps:
-
Contact your insurer
The first someone should take is to contact your insurer or the agent from whom you purchased the life insurance policy. You can contact us via Toll-free no. , E-mail, or directly by visiting the branch.
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Go through your policy brochure
You have to go through the brochure of your policy since all life insurance policies don't offer loans against them. So you have to first understand by yourself or via an agent, whether your life insurance plan is in loan paying bracket or not.
-
Understand your needs
Hope, till now you have to know whether your life insurance consists loan facility or not. Now, you understand your needs and how much amount exactly you need to fulfil your requirements.
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Compare with the market
You should also compare different loan rates among the market, and how much interest they are charging compared with your insurer.
*// kindly note- For more info about loans against life insurance policies, you can contact, our insurance advisor they will thoroughly guide you at every stage of the process.
What are the documents required to take the loan against your life insurance?
For taking the loan against life insurance policies, one should follow the below steps:
- Passport size photo of insurer.
- Copy of Aadhar card, and PAN card.
- Documents of insurance policy.
- Bank statement of insurer, with Previous three months salary slips.
- Additional personal documents such as the nominee's data or something. ( if asked)
Points to keep in mind before taking a loan against your life insurance
Taking a loan against your life insurance is an easy process, But there are some points that one should keep in mind, before final processing:
-
Interest charged
Since every insurer's interest charges are different from another, so you must go through your insurer itself, to know more about the interest charged while processing the loan.
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Waiting period
There is a specific waiting period in every insurer, before applying for a loan. So you should go through your brother or have a word with your agent to know the waiting period for your plan.
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Repayment of loan
Planning to Repayment of the loan is also important, before applying as in case of failure, it directly affects your Future credit limits and might bring down your credit score.
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Loan deed
Going through your loan deed is also very important during the loan process stage, as it contains some useful information like hidden charges, Rate of interest or repayment term, which sometimes the insurer company agents would tell you.
Still Confused About Loan against life insurance polices?
If you are still confused about your Loan against life insurance polices then you can reach out to us at PolicyX.com through the below channels. We are IRDAI-certified insurance advisors and will help you to know everything about your policy loan terms.
- The link to our website is: www.policyx.com
- You can click on the following tab to talk to our experts:
- You can also contact us at 1800-4200-269 (Toll-free)
Conclusion
As, Loan against life insurance policies is a very useful option for people who are looking to take a loan with lower interest but it is also very important that you go through well with the amount. and apply only the necessary amount, as lower interest might push you to take a higher amount but it is indirectly decreasing from your plan sum assured. which results, in fewer death benefits given in case of unfortunate demise during the policy term.
Life Insurance Companies
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Written By: Varun Saxena
I am a passionate content writer with over three years of experience in the insurance domain. An avid learner, I always tries stays ahead of the industry's trends, ensuring my writing remains fresh and includes the latest insurance shifts. Through my work, I strive to engage with targeted insurance readers.
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