Common use of Policy Loan Clause in Contracts

Policy Loan. You may take a loan against Your Policy once it has acquired a Surrender Value. The minimum loan amount is Rs.5,000 and the maximum is 85% of the then applicable Surrender Value less any outstanding Policy loan balance as on that date. The outstanding Policy loan balance is an amount of loan still unpaid plus all accrued but unpaid loan interest up to the given date. Where the Policy is in-force (premium paying) and the outstanding Policy loan balance at any time is equal to or exceeds the then prevailing Surrender Value, then the Policy shall not be terminated. In such cases We shall send a notice 90 days in advance to the Policyholder to pay the loan amount along with the interest. If the Policyholder doesn’t repay the loan or fail to respond to the notice within 90 days of the date of issuance of such notice, We shall have the right to foreclose the Policy. For other than in-force and fully paid up policies, in case outstanding policy loan balance exceeds the surrender value, then the policy shall not be terminated. In such cases ABSLI shall send a notice to the Policyholder. If Policyholder doesn’t repay the loan or fail to respond to the notice, ABSLI shall have right to terminate the policy. Any payment of a proceed against Death, Survival Benefit or Maturity Benefit provisions or as a Surrender Value shall be reduced by any outstanding Policy loan balance at that time and the residual value shall be payable. We shall be issuing the loan re-payment schedule at the time Policyholder opts for the loan against Policy. At the beginning of a Policy Year, the Policy shall be assigned the latest Loan Interest Rate declared by company. We shall declare the Loan Interest Rate applicable to all policies under this product on June 1st of every calendar year which shall be assigned to policies on their next Policy Anniversary and is equal to the base rate of the State bank of India plus 100 basis points. The interest rate applicable as on June 1st, 2020 is 9.15% p.a. Any change in basis of determination of interest rate for Policy loan can be done only after prior approval of IRDAI.

Policy Loan. You may take a loan against Your Policy once it has acquired a Surrender Value. The minimum loan amount is Rs.5,000 and the maximum is 8580% of the then applicable Surrender Value less any outstanding Policy loan balance as on that date. On exercising this option, the Policy shall automatically get assigned to the Company to the extent of the outstanding Policy loan balance. The outstanding Policy loan balance is an amount of loan still unpaid plus all accrued but unpaid loan interest up to the given date. Where the Policy is in-force (premium paying) or all due Instalment Premiums under the Policy have been paid, and if the outstanding Policy loan balance at any time is plus interest becomes equal to or exceeds the then prevailing Surrender Value, then Value available under the Policy shall not be terminated. In such cases as on that date, We shall send a notice 90 days in advance to the Policyholder to pay the repay such outstanding loan amount balance along with the applicable interest. If the Policyholder doesn’t repay the loan or fail to respond to the notice within 90 days of the date of issuance of such notice, We shall have the right to foreclose the Policy. For other than inReduced Paid-force and fully paid up policiesPolicies, in case outstanding policy loan balance plus applicable interest exceeds the surrender valueSurrender Value, available under the Policy as on that date, then the policy We shall not be terminated. In such cases ABSLI shall send a notice to the Policyholder. If Policyholder doesn’t repay the loan or fail to respond to the notice, ABSLI shall have right to terminate the policyPolicy. Any payment of a proceed against Death, Survival Benefit or Maturity Benefit provisions or as a Surrender Value shall be reduced by any outstanding Policy loan balance at that time and the residual value shall be payable. We shall be issuing the loan re-payment schedule at the time Policyholder opts for the loan against Policy. At the beginning of a Policy Year, the Policy shall be assigned the latest Loan Interest Rate declared by company. We shall declare the Loan Interest Rate applicable to all policies under this product on June 1st of every calendar year which shall be assigned to policies on their next Policy Anniversary and is equal to the base rate of the State bank of India plus 100 basis points. The interest rate applicable as on June 1st, 2020 2022 is 9.158.55% p.a. Any change in basis of determination of interest rate for Policy loan can be done only after prior approval of IRDAI.

Policy Loan. You may The Policyholder can take a loan against Your Policy once it Loan under the Policy provided that the Policy has acquired a Surrender Value. Value at the time of request for Loan, subject to the following conditions: a) The minimum loan Loan amount is Rs.5,000 Rs. 5,000 and the maximum amount of Loan that may be granted under the Policy is 85up to 80% of the then applicable Surrender Value available less any outstanding Policy loan balance Loan as on that date. The On exercising this option, the Policy shall automatically get assigned to the Company to the extent of the outstanding Policy loan balance. b) The outstanding Loan balance is an the amount of loan still Loan unpaid plus all accrued but unpaid loan Loan interest up to as on a particular date. c) At any time during the given date. Where Policy Term when the Policy is in-force (premium paying) or all due Instalment Premiums under the Policy have been paid, and if the outstanding Policy loan balance at any time is Loan plus Loan interest becomes equal to or exceeds the then prevailing Surrender ValueValue available under the Policy as on that date, the Company will inform the Policyholder of the same with a 90-days advance notice to repay such outstanding Loan balance along with applicable interest. d) If a Policy is a Reduced Paid-up Policy, and if the outstanding Loan plus Loan interest exceeds the Surrender Value available under the Policy as on that date, then the Policy ABSLI shall not be terminated. In such cases We shall send a notice 90 days in advance to the Policyholder to pay the loan amount along with the interest. If the Policyholder doesn’t repay the loan or fail to respond to the notice within 90 days of the date of issuance of such notice, We shall have the right to foreclose terminate the Policy. For other than in-force and fully paid up policies, in case outstanding policy loan balance exceeds . e) The interest on Loan applicable on the surrender value, then the policy shall not Loan amount will be terminated. In such cases ABSLI shall send a notice to the Policyholder. If Policyholder doesn’t repay the loan or fail to respond to the notice, ABSLI shall have right to terminate the policy. Any payment of a proceed against Death, Survival Benefit or Maturity Benefit provisions or as a Surrender Value shall be reduced by any outstanding Policy loan balance at that time and the residual value shall be payable. We shall be issuing the loan re-payment schedule at the time Policyholder opts for the loan against Policy. At the beginning of a Policy Year, the Policy shall be assigned the latest Loan Interest Rate declared by company. We shall declare the Loan Interest Rate applicable to all policies under this product Company on June 1st of every calendar year which shall be assigned to policies on their next Policy Anniversary and is equal to the base rate of the State bank of India plus 100 basis points. The current Loan interest rate rate, applicable as on June 1st1st 2022, 2020 is 9.158.55% p.a. (compounded). Any change in basis of determination of interest rate for Policy loan Loan can be done only after prior approval of the IRDAI. f) Any payment due under the Policy on the death of the Life Insured, Survival or the Maturity Date or withdrawal of Accrued Paid Up Additions, (if any) or as Surrender Value shall be reduced by any outstanding Policy Loan balance and interest thereon at that time and the residual value shall be paid to the Nominee(s)/ Legal Heir(s) or Policyholder as the case may be. g) The Company shall issue a Loan Statement to the Policyholder as and when required for the Loan against Policy. h) The Policyholder may repay all or part of the outstanding Policy Loan subject to the prevailing administration guidelines issued by the Company.