Do you know that life insurance can help you…in case of emergency!

Many people may be wondering…how life insurance is helping us in an emergency.
It’s possible!... Life insurance can help us in an emergency or when we need money
with “Policy Loan Service”.

“Policy Loan Service” is to use the policy cash value in the insurance policy you have purchased while life coverage still continues based on policy conditions. However, the condition is principal and interest amount must be repaid later. You can repay principal and interest amount anytime within the period the policy is effective.

Remark:
1. Loan amount must not exceed policy cash value.
2. Interest rate is subject to each type of policy.

Although “life insurance” can help you when you need money, before making a policy loan request, it is important for you to know the policy loan conditions. Let’s see the following checklist.

The eligible policy must be endowment, whole life, and annuity insurance. 
Endowment, whole life, and annuity are insurance plans that have cash value. When there is sufficient policy cash value, policy loan is available.
Based on the compound interest calculation, average interest rate is 6-8% per year.
The Company will charge the interest rate as specified in the policy schedule. Compound interest will be charged at the higher rate than the interest rate used to calculate premiums by 2% per year. The average interest rate is 6-8% per year. (Interest rate is subject to conditions of each policy. The details can be studied in the policy book.)
The policy will be terminated immediately if the outstanding loan and interest are over the policy surrender value.
Also, the coverage is terminated.
Loan must not exceed the policy cash value.
Most of the time, the loan approved is up to 80-90% of the policy cash value (deducted by outstanding debts). You can check the loan amount from your policy book which is shown in the policy value schedule.
Policy must still be in force, and it has not yet been converted into reduced paid-up policy or extended term insurance.
▪ Reduced paid-up policy means the policy you do not need to pay premium any longer. Coverage period remains unchanged, but the sum insured is reduced.
▪ Extended term policy means the policy you do not need to pay premium any longer. Sum insured remains unchanged, but the coverage period is reduced.
The premium payment instalment must be already made before requesting policy loan.
If you are about to make a policy loan request, but you have not yet made premium payment of that instalment. You need to complete the payment in order to be able to make the policy loan.


Policy Loan Repayment Channels

● MTL Click Application
Simply go to the menu “Pay Premiums/Loan”, and follow the steps of loan repayment.

● Video Call Tel. 1766 
Simply call Tel. 1766 and inform that you would like to make policy loan repayment. After that, choose to receive the link to have the conversation via SMS or email. The staff will confirm the personal information, and you can use the Video Call service to make a policy loan repayment right away.

● Mobile Banking 
Pay via barcode/QR code by filling out the Special Pay form, click  


● Bank counters or payment service points by filling out the special pay-in slip, or via Kasikornbank account No. 10399-9, UOB BP CODE 1720 and TMB Thanachart Bank Comp.Code: 5506, or via Pay@Post Service Code 595 (loan repayment) for maximum amount of 50,000 Baht, mPAY STATION for maximum amount of 49,000 Baht Download the repayment form, click 

● All branches of Customer Service Center of Muang Thai Life Assurance nationwide

Instant Loan Service
Enjoy more convenient service for the loan amount of up to 50,000 Baht
Receive the cheque within 45 minutes
At all branches of Customer Service Center nationwide

• Regional branches (Chiang Mai, Khon Kaen and Hat Yai) approve loan amount of up to 200,000 Baht.
• Customer Service Center at head office of Muang Thai Life PCL approves unlimited loan amount.

Q&A of policy loan

Q: What is “policy cash value”?
A: Policy cash value is accumulated cash value in the life insurance policy from paid premium. The longer premium is paid,  the higher policy cash value will be. Definitely, in the first year of premium payment, the policy does not have the cash value. The cash value is subject to the policy conditions.

Q: Why is there interest from making policy loan?
A: It is because the policy loan is  when you use policy cash value instead of accumulating the cash value for life coverage or benefits that the Company has to pay you according to the insurance conditions. Once you get a loan from policy cash value, you are required to pay the loan interest.

Q: How can I know how much loan amount I get?
A: You can check your entitled policy loan amount at:
    - MTL Click Application
    - Call Tel. 1766, available 24/7.
    - Customer Service Center of Muang Thai Life Assurance nationwide

Q: What documents should be prepared to make a loan request by myself?
A: Prepare complete documents  
    • Copy of ID card, cross out your “religion” information until that information cannot be read, and sign. In case you did not do so, you consent the Company to cross out your religion information on your behalf and certify true copy.
    • Policy loan contract
    • Copy of passbook page with name of the insured (in case of money transfer via bank account)

Q: What documents should be prepared if I ask others to make a loan request?
A: Prepare complete documents  
    • Insurance policy of the insured
    • Letter of power of attorney for receiving the cheque
    • Copy of ID card of the insured and the authorized person certified as true copy
    • Policy loan contract with the signature of the insured and witnesses
    • Copy of passbook page with name of the insured (in case transferring via bank account is required.)

Q: Where can I receive the loan?
A: • A/C payee cheque  
    • Transfer to bank account (media clearing)
    • PromptPay (for transactions made via Video Call Service)

Q: What is the limitation of the policy loan?
A: The limitation is insufficient policy cash value which might be due to failure of premium payment or high  
 outstanding loan without repayment.  

Q: If I would like to make policy loan, but the request is rejected. Why is it rejected? What should I do?
A: The insured must reach the legal age if the insured would like to make the policy loan by yourself. In case the insured has not yet reached the legal age, policy loan must be made by legal representative who entered into the contract and is a premium payer. In case of transferring and exercising the rights, and transferring policy benefits, only the assignee of the rights can make the policy loan. In case the insured’s signature in the policy loan contract is different from that given to the Company, the insured must sign in the Company’s signature confirmation form.

Q: What should I do if the policy matures before all outstanding loan is repaid?
A: In case of policy maturity, outstanding loan will be deducted from maturity benefits before paying to the insured.

Q: What should I do if I pass away during the repayment period of the policy loan?
A: Outstanding loan will be deducted from death claim benefit before paying to the beneficiary.  


Remark: Service conditions are as specified by Muang Thai Life Assurance PCL.
 

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