Life Insurance Loans – Are you in need of quick cash, and you are running out of options, the one place to acquire such emergency loans is your insurance policy. Read carefully through this article to know more about the life insurance policy in Nigeria.
Getting a loan from a life insurance policy could be easy to get quick credit. There are some factors to consider before you decide to take up a loan on your insurance policy.
Meaning of Insurance Loan
These loans are unique from a bank loan or credit card. Insurance loans do not in any way affect your credit score, unlike other loans. They also eliminate the process of approval from the credit point since you are borrowing from yourself. When you are given a loan on your insurance policy, You can use it for anything you choose.
However, it is expected that a policy loan should be paid back, and interest is also payable on these loans. Though the interest rates are usually much lower than that of bank loans, and there is no required monthly payment upon the borrower.
How do life insurance loans work?
Life insurance loans are only available on permanent life insurance policies than consist of a cash value component. Your policy’s cash value grows over time. you can use it as collateral to request a loan from your insurance company.
How to Pay Back An Insurance Loan
Having known about taking out a loan on a life policy, the loan will need to be paid back promptly. Insurance companies would provide many opportunities to keep the loan updated and prevent the insurance policy from fading. In a situation when the loan balance is not paid back at the time of death of the borrower, the loan balance plus interest will be deducted from the amount the beneficiaries are to receive from the death benefit.
- EFCC Screening Date/Venue 2022
- CBN Recruitment Application Portal 2022/2023
- How to Get Loans For Farmers In Nigeria
Benefits of life insurance loans
Life insurance loans have several advantages, including:
- No additional requirements: Borrowing money from a life insurance policy doesn’t require you to go through a credit check, employment verification, or meet minimum income requirements. This can make it easier to get money when are in need.
- No repayment schedule: You can repay back your loan anytime rather than being tied to a repayment schedule. But it’s important to not let your owed amount exceed your cash value, and you should continue paying your premium on time so your policy doesn’t lapse
- No additional collateral: Because your policy’s cash value is used to secure the loan, you don’t have to put other assets at risk
- No restrictions: There are no restrictions on how you can spend the money. You can use it to pay for anything of your choice
- Continued cash value growth: Since your cash value is only used as collateral for your loan, it remains in your policy and continues to expand.
How to get life insurance
You can a get life insurance loan online. All you need is to answer the following questions; then you’ll choose your payment amount, term length, and other policy details.
- Instant Loans – Banks Offering Instant Loans in Nigeria
- Cheap Loans Without BVN In Nigeria
- Personal Loans – Where To Get Personal Loans
- Petty cash Loan – How to Borrow Money from Petty Cash
- Central Bank Of Nigeria (CBN) Loans / How To Get A Loan From CBN
Yawajobs is NOT the official page. This is only a one-page summarized information page. While we endeavor to keep the information up to date and correct, information may change at any time without notice. Please always refer to the official website of the host/official page for complete and updated information