"Adjusting position" with policy loan

A policy, in addition to the occurrence of insurance accidents in the role of the weekdays, what is the special function?　　Recently, Mr. Zhang, a citizen of Beijing, cleverly used a life insurance policy he had insured with the Taiping Life Insurance company to fill a down payment for his son's purchase. To solve the shortfall in down payment, as early as in 2008, Mr. Zhang insured a return-type life insurance policy, early 2011, because the son of the first purchase Shang in 50,000 Yuan Gap, so Mr. Zhang thought of the return of the working capital.　　After communicating with the insurance company, Mr. Zhang learned that surrender is actually a very adverse choice for himself, one is that the protection function will stop, and the second is that the cash value of the account may be lower than the premium already paid. With the insurance company's warning, Mr. Zhang used the loan function of the policy to apply for the loan to the insurance company according to the cash value of the policy. Pledge in 3 working days, he got 60,000 yuan, the problem of down payment gap solved.　　During the application, he only provided the insurance company with a valid insurance policy and a personal identification certificate. "The insurance company staff told me that the loan period can be 6 months." During this time, I can always choose to repay or partially repay the loan and interest at any time. The original guarantee function of the policy will not be affected at all.　　Mr Zhang says such services are just as convenient for policy holders like them. Interest rates vary. In fact, the policy loan service has a long history, in the life of short-term funding shortages, turnover of the policy holders can use this service to tide over the difficulties. For example, when private entrepreneurs need financial support, they can apply for a loan with a qualifying policy.　　Because of the faster lending rate (typically 3 to 5 working days), it is generally possible for policy holders to share their worries. According to the company's staff, many companies now have policy loans, but not all policies are applicable to policy loans, in general, only the nature of the savings of life insurance, bonus and pension insurance, annuity insurance policies can apply for loans to insurance companies,　　A product with a large account fluctuation, such as a risk of investment, may not have the function.　　The total amount of general loans cannot exceed 70% or 80% of the cash value of the policy, and the longest loan period does not exceed 6 months. Insurance companies have different rules for lending rates, and for floating rates, there may be multiple adjustments over the year. For example, the Sino-Italian Life "Fu Jinsheng" insurance can provide policy loan services, the provisions of the terms, "the amount of loans shall not exceed the cash value of the contract after deducting the balance of the remaining 80% of each loan, the maximum period of no more than 6 months." The maximum rate of loan interest is no more than the largest of the following: 1. The PBoC's 6-month lending rate and 2% per cent were 2.4%.　　"Therefore, if you have several insurance policies that can provide loan services, you may want to compare the interest rate at that time." In addition, the insurance company staff also pointed out that the policy loan must meet certain conditions, such as already paid 2 years (or more than 2 years) of insurance, orWithholding insurance premiums and so on.　　The guarantee part may renew the customer after applying for the policy loan, if has the insurance accident, still may apply for the claim, the insurance company will deduct the loan principal and interest to pay the corresponding insurance premiums, does not affect the insurance claim prescription. Taiping Life's experts also specifically remind customers that insurance provides the most essential function is protection. During the loan period, the customer still needs to pay the premium on schedule, so that the insurance contract can be maintained during the borrowings. When the policy loan expires and the customer fails to repay the loan, the insurance company will deduct the cash value of the policy for repayment of the loan and interest. Once the cash value of the insurance contract is not sufficient to cover the outstanding premiums and interest, the validity of the insurance contract will be terminated.