How To Get A Loan From An Insurance Company – You might not be aware that you can get a loan from your insurance company. Well, we shall be showing you how you can do that here. Simple read through this content to get updated on what to do.
Here, we shall be giving you all the needed information that will be of help to you on How To Get A Loan From An Insurance Company. So if you are wondering if this right or not then you have to read through this content.
I would like to categorically tell you that you can get a loan from your insurance company. Yes it is and you are at the right page to get this information. Here, we have listed out steps on how you can do this.
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How To Get A Loan From An Insurance Company
This is only possible only when you have a LIFE INSURANCE POLICY. Borrowing money from a life insurance might mean getting a quick loan. It is important to note that you can only borrow against your whole life insurance or permanent policy.
Benefits of Getting a Loan from Your Insurance Company
Nobody will ask you how you will spend this money when you are requesting from a loan here. Anything you want to use the money for is totally your business. Another benefit is that this type of loan is not recognisable by tax regulating bodies which means that it is free from tax.
Nevertheless, this is not a grant as you will have to pay back for this loan as at when due and with your incurred interest. However, the interest rate is lower than bank loans and you will not have to pay monthly as banks requests.
How to Pay Back Loans
Insurance companies in Nigeria ensure that several repayment opportunities are provided for their clients because they want the loan to be fully repaid and to prevent laps. However, should the insured die, the insurance company will add up the loan amount and the interest rate. Then, they will deduct it from whatever the beneficiary of the deceased are meant to collect from his or her death benefit.
The interest rate is lower than bank loans, and the repayment is flexible. That is to say that you are not mandated to pay back monthly. However, irrespective of this, you still have to pay back what you have loaned. Not only paying back, you must also ensure that you do this in a timely manner.
If you do not repay your loan as at when due, the interest will be added to your balance each month, and it keeps increasing whether you pay monthly or not. You will not want to find yourself in this kind of situation. This is because the likelihood of exceeding the policy cash value which will cause your policy value to elapse is there.