In my country, a variety of ways to apply for loans give people many options, of which insurance loans are a common practice. But some voices from the market have raised public doubts about the policy loan: is it really necessary to repay it in full within six months? Now, let's find out。

Do you have to pay off the policy in six months

First, it must be made clear that a policy loan does not have to be repaid within six months. In day-to-day operations, insurance companies also charge interest if the lender is unable to meet the requirements for timely repayment due to certain factors. If the value of the policy was not sufficient to offset the accumulated interest on the loan, the guarantee would cease。

On the other hand, there are two types of policy loans: policy cash-value loans and policy credit loans. For policy loans, late payments can have a negative impact on the credit rating of borrowing institutions or individuals。

It also needs to be clarified, however, that certain types of insurance are not available for loan applications. For example, short-term accident and health insurance cannot apply for loans because these policies either have no cash value or are too low. Medical insurance, property insurance and child insurance, which have a non-contributory function, are not allowed to apply for mortgage-free loans. In addition, a company-insurance equivalent to a premium of over $100,000 could not be used for loans, although the value of cash could be accumulated rapidly, owing to uncertainty over the price volatility of the investment unit。