Need money? Have insurance policy? You may get loan against it! This company launches new offer

To help policyholders tide over income disruption caused due to coronavirus-caused Covid 19 pandemic, Bajaj Allianz Life Insurance has come up with a new offer of loan against insurance policy. As the Modi government, Reserve Bank of India and financial institutions are taking various measures to provide immediate financial support, customers can also turn to their Bajaj Allianz Life Insurance to avail money in these trying times.

How to avail loan against insurance?

The only criteria to avail the loan on Bajaj Allianz Life is that the insurance policy must have gained a surrender value.

Loan amount?

The company is offering a loan up to 90 per cent of surrender value of the policy.

Interest rate: 9 per cent.

Application procedure?

"The loan application procedure is simple and hassle-free, and we'd be able to help our customers immediately," Bajaj Allianz Life Chief (Operations) Kayzad Hiramanek said. Customers should know that their life cover on the policy that they availed the loan on, will continue along with all other benefits as mentioned under the policy, he added.

"As customers will continue to enjoy the benefits of the policy, they should ensure that the loan is repaid in a timely manner to ensure the outstanding loan does not exceed the surrender value which may lead to foreclosure," the company said in a statement.

Earlier, Bajaj Allianz Life Insurance had said that it will be focusing on pension products and also expects that share of these products in its total first premium income to become 15-18 per cent by end of the current fiscal.