Life insurance and loans

In this part, we are looking at loans with a life insurance policy and how to determine them for traditional documents, which are not linked directly to investment performance, which have an insurance amount on maturity in countries that do not use the concept of monetary value in liquidation of the document,

1. The loan is guaranteed by the policy loan
There are two types of loans, insurance companies, a loan called interest loan, and a loan called a loan payments

Means that the loan is paid in equal installments at an interest rate, for example a loan of installments and the principal of the loan is equivalent to one thousand pounds to be repaid in equal monthly installments at an annual interest rate of 6% ,, and the monthly installment is equal to 30.27 pounds for 36 months

Loan Interest is a loan that is paid in whole or in part at any time when the contractor wishes to repay the loan in full or in partial payment, there are no equal periods of time in which the payment is made, and the repayments are not required to be equal, Are collected at equal periodic intervals with the receipt of the periodic premium, if the interest is not paid at equal intervals, they shall be added (added) to the principal of the loan

* The insurance company may grant loans on the document provided that the contractor has paid the installments of three full years or more, and that the document required to borrow with the guarantee is valid for the full amount of insurance and regular payment, and not be of the type of temporary insurance, 90% of the liquidation amount of the document, so we must calculate the liquidation so that we can calculate the loan, so when we calculate the amount of liquidation, the liquidation is a fake and not a real liquidation, and the interest on the loan is collected with the premium mostly. The benefits, if it has fallen with the premium, are deducted The interest is due on the document and is called the interest of the discounted loan, and should be subtracted from the amount of the claim when the document becomes a claim. If the interest on the loan is not collected with the premium, it is added annually to the loan principal. The loan shall not be repaid during the period of the validity of the document. It shall be subtracted from the amount of the claim when the document becomes a claim. When the loan is granted, the document shall be stamped with the amount and date of the loan. The loan shall be signed by the contractor. Receipt of the loan and clarifies the terms of the loan

* The principal of the loan may be repaid at interest rate in installments, with the periodic installment, so that the period of the periodic installment coincides with the period of the periodic installment and the total period of repayment of the loan payments is not more than three years or five years, What is called the loan payments, for example if the premium monthly, the loan payment will be monthly and no more than 36 payments, if the remaining period on the maturity date of the document at the time of obtaining the loan is 18 months is the installment of the loan on payment Monthly for 18 months rather than 36 months, and for example if a priest A quarter of the annual insurance installment repayment of the loan will be quarterly and the number of payments over 12 batch ,, so ,, and the remaining loan balance of claim deduction in the case of insurance expiration for any reason ((liquidation, death, amortization of the loan in the case of reduction))

The calculation of the amount of the loan depends on whether the contractor is borrowing the insurance amount of the document or borrowing the insurance amount of the document and the accumulated profits on the document. In order to borrow the insurance amount of the document and profits, the document must be with the participation in the profits. If the contractor requests the maximum loan, Be guaranteed by the insurance amount of the document and profits, subject to the terms of the document, and when borrowing with the guarantee of documents with the participation in profits, the loan may affect the profits of the document (reduce)

* If the contractor is borrowing the guarantee amount of the document and profits, the total available loans is 90% of the total liquidation of the amount of insurance and liquidation of profits, and subtract from the total loans available balance of previous loans, if any, to reach the maximum loan can be disbursed.

Loan Interest Interest is calculated at an annual interest rate that may differ from the annual interest rate on the loan payments.

Abstract

• To calculate the loan with the document guarantee, follow these steps:

1 reduction calculation

2. Liquidation Account

3 Total Available Loans equals 90% of the liquidation amount of the insurance or 90% of the total liquidation amount of insurance and liquidation of profits.

2- How to determine interest on interest loan
* For interest loans, the annual interest on the loan balance is calculated as follows:

Annual interest = (principal of loan required + balance of loans, past interest if any) x Annual interest rate

The benefits are collected with the periodic premium, but the periodic period of premium is considered as follows:

If the periodic installment is a monthly premium, the annual interest is divided by 12

If the periodic installment is a semi-annual premium, the annual interest is divided by 2

If the periodic installment is a quarterly premium, the annual interest is divided by 4

3 - amortization of the loan in installments
And determine the payment amount

Loan amortization on a periodic payment means that the loan is repaid in equal periodic installments and equal time periods. In the case of a loan, payments are the loan that can be paid on a periodic payment, for example a monthly, quarterly, semi-annual or fixed monthly payment.

For loan payments in insurance companies, the loan is amortized on a periodic payment for example every month or every year, and the loan payment is calculated as follows:

1 We determine the number of payments taking into account the periodic period of the premium (monthly, annual, semi-annual, quarterly) because the periodic payment will be repaid with the receipt of the periodic premium where added to the premium receipt

2. The repayment period of the loan shall not exceed the beginning of the first periodic payment (with the periodic installment) for three years or five years, as determined by the insurance company. The paid payment shall not exceed the expiry date of the insurance. The regular periodic payment when the principal of the loan is equal to the unit of cash and interest rate p% for each period of time to receive the normal payment factor (the amount of payment per loan) based on the number of time periods n we choose, and then multiply the payment factor in the principal of the loan. The amount of the regular payment (back), but the insurance companies use the advance payment Therefore, a mathematical (arithmetic) action must be taken to convert the normal batch factor to the advance payment factor


3. The first column of the loan amortization table in the installments indicated below (the schedule of determining the amount of the periodic payment of one pound) shows the number of periodic or periodic periods (number of payments) and the first row of the table shows the interest rates. If the annual interest rate on the loan is 6% The monthly premium was, we divide the annual interest rate by 6% on 12 to get the monthly interest rate which is half a cent, means the period (periodic) is the monthly period and the interest rate for this time period is half per cent, The annual interest on the loan was 6% and the premium was quarterly, so we divide the rate of lost The annual rate is 6% on 4 to get the quarterly interest rate of 1.5%, and the 6% column is for annual payments.