Life Insurance Policy Loans

Hong Kong life insurance plans which accumulate a Cash Value can be used as loan collateral which allows the policyholder to borrow money directly from the insurance company – the policy’s built up cash value is used as security on the loan, which can be for no more than this amount.

This concept arises out of the features of a Non-Forfeiture Benefit, specifically the Automatic Loan Application. 

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How Life Insurance Loans Work In Hong Kong

The policyholder of a life insurance plan which has accumulated a built up cash value has a right to borrow money from the insurance company. The money borrowed may be used for any purpose, at the discretion of the policyholder.

The biggest condition of a Life Insurance Policy Loan is that the loan amount may not be larger than the total accumulated cash value of the policy, and that the only security required for the loan is the policy’s cash value.

The policyholder may decide to repay the loan, or they may decide to never repay the loan. In the event that the policyholder never repays the loan, the loan amount plus any applicable interest is removed from the death benefit when payable.


Free Life Insurance Quotes in Hong Kong

If you would like to learn more about how a Hong Kong life insurance plan can be used as a loan vehicle, or if you have any additional questions about life insurance in Hong Kong, please Contact Us to speak with a CCW Global Life Insurance Broker today.


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