If your policy has an available cash value, you may obtain a policy loan provided that the amount does not exceed the available cash value. A policy loan has annually compounded interest, at the rate set by the Company.

The requirements in availing a cash loan are:

  • Policy Loan Application Form. The form must be signed and completely accomplished by the Policy Owner and all irrevocable beneficiaries.
  • Policy Contract, (or Affidavit of Lost Policy, if policy is lost)
  • Photocopy of any Valid Identification Card (e.g. driver’s license, passport)

Your loan can be paid in cash or by check at any time. Note that an unpaid policy loan bears a compounded interest.

An unpaid policy loan, whether incurred from an unpaid premium or an actual cash loan, will bear an interest computed at a fixed rate per annum. If the interest is not paid, it is compounded so that it becomes part of the principal loan at the next policy anniversary.

Non-payment of policy loans leads to the exhaustion of the cash value reserves, which could in turn cause the policy to terminate by itself.