Take a policy loan

If you own a whole life or an endowment insurance policy, you can take out a policy loan against the cash value that had built up in the policy. Generally, the policy will acquire cash value after being in force for three full policy years. Compound interest is chargeable on the policy loan at a rate at which the Company shall determine from time to time. Any Policy Loan outstanding will be deducted before any claims is payable. The current Policy Loan Interest Rate will be temporarily revised from 6.8% to 6.4% per annum effective 1st January 2021 and this interest rate is subject to change by the Company from time to time.

As for Great Universal Life policy, you can take out a policy loan against the policy account value net of surrender charge (if any). The Policy Loan Interest Rate is the prevailing crediting rate plus 2%. This interest rate is subject to change by the Company from time to time. 

A loan is available when the policy has acquired a cash value. A policy loan based on a percentage of the gross cash value subject to deduction of outstanding loan or APL, if any can be granted. Policy loans are not available for investment-linked, HealthCare and term policies. 

You can apply for loan simply by:

• Asking the assistance of your Life Planning Advisor
• Mail your request to our Head Office address or your nearest branch
• Email your request to wecare-my@greateasternlife.com
• Call in to our Customer Service Careline at 1300-1300 88
• Apply for a loan personally at our Customer Service Centre on Mezzanine Floor at the head office or the nearest branch. Our Customer Service Officers will be there to help you
  

Procedures

Upon receipt of your request, we will inform you of the loan available and the requirements. The requirements are:

• Loan agreement to be signed by the Policy Owner or Assignee where applicable
• Consent letter from the Trustee(s)/ Nominee/ Parent of the Nominee/ Conditional Assignee where applicable

Note: The rates above are subject to change by the Company from time to time.

Overdue/Late Premium Interest
Overdue/Late Premium Interest as specified above is applicable and payable by the policyowner when payment of premium is made after the 30 days Grace Period.

Crediting Rate
Crediting Rate will determine the credited return which will be credited every month into the policyowner's account. The actual crediting rate is not guaranteed and will fluctuate based on the investment performance. A higher credited return may be credited if the investments have performed well and conversely, a lower or negative credited return may be credited if the investments have performed poorly. A negative crediting rate will result in a reduction of Account Value.

Crediting Spread
Crediting spread for the products below is deducted on a monthly basis from the investment return prior to the crediting of the credited return into policyowner's account.