What is a policy loan?

 

 More and more people claim a policy loan.

More and more people claim a policy loan.

Every second policyholder makes use of this option. Unemployment, disability, illness and many other causes make it difficult for the consumer today to meet his demands at all times and in an appropriate way. Anyone who has provided for a life insurance in good time can be lucky.

The advantage of a life insurance

The advantage of a life insurance

Life insurance companies have the advantage that they can be lent at any time with the current repayment value. A fact that many consumers take advantage of even before the actual date for the payment of premiums. The policy loan is becoming increasingly popular, not least because more and more policyholders are experiencing financial difficulties.
Everywhere, changing life situations can lead to monetary emergencies occurring faster than expected.

A policy loan is a secure affair that can only come about through a life insurance policy. In this way, many owners of life insurance benefit and normally the planned pension will remain unaffected, if it can be paid back in time.

Policy loans are particularly popular because:

  • they can be granted without Credit bureau information
  • the customer can choose between a term of one to ten years
  • the repurchase value can be 100 per cent borrowed
  • no additional insurance needs to be completed
  • no processing fee applies
  • Special repayments and immediate repayments can be arranged

Never be pressured and stay confident

Never be pressured and stay confident

Everything needs it’s time. A good consultant knows the market situation and supports his clients in the selection of the best offers. You like to negotiate the interest rates and inform yourself about the current figures before the negotiations.

So you are well equipped and can check the information of the bank immediately on their value. Only when all your individual wishes have been considered and discussed, you are 100% agree, the policy loan can be applied for and advocated.

But: these conditions are negotiable.

Therefore, you should always compare which bank lends to which offers. Some banks are less customer-oriented. Of course, a bank lives on the money it takes and not on the one it gives away. You should make that intention your own. First check – then draw!

First compare all offers

First compare all offers

If you urgently need a loan and can not get by with a small instant loan, you can lend your life insurance. This usually works so that the customer can lend exactly the current surrender value of his insurance. He always pays the current interest rate, which may vary widely among different banks.

Anyone who is interested in this solution should always first compare the offers of the banks before it goes to action. Here are up to 3% better conditions to find and comparison on the Internet is done quickly. Nobody has to give away their money – certainly not when they are seeking a loan.

Stay true to your original intention

Stay true to your original intention

Many experts believe that short-term policy loans can pay off. Anyone who has to put up with a long term should be careful not to overstate the loan. Also special repayments or an immediate repayment of the entire loan amount should always be taken into account.

Over the years, living conditions can change – consumers always have to plan in advance. Only when all risks are minimized can the policy loan be used. Care for old age should never be used without a real compelling reason.

Be careful, if the banker presses

Once all the conditions have been clarified, the repayment plan and the contracts signed, it is too late for a settlement on the financial market.

Further thematically fitting contributions

  • follow-up financing
  • When do I need credit insurance?
  • Which factors count in the loan application?
  • How can you finance your solar system?
  • Are there any loans for entrepreneurs?

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