Can I obtain a loan on my policy? If so, when can I avail it and what would be the maximum amount I can avail?A loan may be available within one to three years of the commencement of the policy, depending on the plan and the insurance company.
04 Dec 2008
No loan is available on term plans. However, a loan is available in case of most policies with profit/bonus/guaranteed additions. It is also available on unit-linked plans. However, it is always prudent to verify such details in the brochures and the plan.
A loan may be available within one to three years of the commencement of the policy, depending on the plan and the insurance company.
The loan amount depends on the type of policy, the premium amount, the term of the policy and the number of years the premium has been paid.
Approximately 75 per cent to 90 per cent of the surrender value of the policy is available as a loan, at the prevailing rate of interest. The sum can be repaid in part or in full at any time during the term of the policy. If the loan is not repaid, it will be deducted from the proceeds of policy.