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Loan against a policy · Godavari Jeevan Bachat (endowment) · Godavari Life Insurance Co. · ••••1904
Illustrative
Loan against a policy
InsurerGodavari
Owed
₹1,57,125
incl. ₹7,125 interest
Surrender value
₹2,20,000
from the insurer
Rate a year
9.50%
added half-yearly
Foreclosure risk
~4 yrs
if interest isn't paid
A loan from Godavari Life Insurance Co. against your life insurance policy: ₹1,57,125 owed at 9.50% a year. Interest not paid is added to the loan; once what's owed reaches the surrender value, the insurer can end the policy.
Myra's most important observations
Prefilled from your line · edit freely
Policy loan · what it grows to
Prefilled from Sanction p.1, Loan · Sanction p.1, Surrender value · Sanction p.1, Interest
5 yrs
₹1,57,125
₹2,20,000
9.50%
Owed after 5 years
₹2,49,911above the surrender value
Reaches the surrender value
~4 yrsif nothing is paid
Assumptions & limits. Interest at 9.50% a year, added to the loan every half-year when it isn't paid (the usual practice; your policy's terms decide). The surrender value is held steady; it usually rises over the years, which gives a little more room. Once what's owed reaches it, the insurer can foreclose the policy.