Bajaj Allianz offers loan against life insurance policy

To provide financial support to customers amid the two-month long coronavirus lockdown, Bajaj Allianz life insurance has recently launched an unique option — avail loans against insurance policies. Coronavirus pandemic affected a lot of people, resulting in a cash crunch. Your insurance policy can come handy when a financial emergency like this comes up.

“This feature is valuable for customers who are looking for financial assistance in these times," said Kayzad Hiramanek, chief-customer experience and operations, Bajaj Allianz Life.

Relatively low interest rates and hassle-free loan approval are key benefits of this loan against life insurance policy facility. Bajaj Allianz is offering loans at the lowest interest rate of 9%. However, the insurance policy must have gained a surrender value to get the benefits of availing a personal loan. Surrender value is the value of the policy that you get when you terminate the insurance plan voluntarily.

Bajaj Allianz life insurance customers can get a loan of up to 90% of surrender value of the policy. The company does not consider CIBIL score as a parameter for offering loans like banks or other financial institutions. The eligibility will be decided as per policy term and conditions, the insurer said. The application for availing loan will be less cumbersome as the company already had all the necessary details of the customers. "The loan application procedure is simple and hassle-free, and we’d be able to help our customers immediately," the insurance company said.

While the policy gets assigned to the insurance company, the life cover on the insurance policy continues along with all other benefits as mentioned under the policy till the loan is repaid. "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." Hiramanek added.

Source: Live Mint