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:
- Loan amount must not exceed policy cash value.
- Interest rate is subject to each type of policy.
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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 installment. You need to complete the payment in order to be able to make the policy loan.
Policy loan service
The insured has the right to request for policy loan when the policy has not been exercised of the right to convert to reduced paid-up insurance policy/extended term insurance policy, and the policy has surrender value. The Company shall charge the compound interest at the rate specified by the Company for each insurance plan.
Remarks:
1. The policy will be terminated immediately when the loan amount and the outstanding interest are higher than the cash surrender value at that time.
2. Conditions of policy loan are subject to conditions of each insurance plan. As some life insurance plans do not have cash value, the right of policy loan cannot be exercised.
Steps and processes
Prepare documents >> submit documents >> consider policy loan >> transfer policy loan >> receive policy loan
Document evidence
Muang Thai Life Assurance has various channels to submit the documents you have been prepared as follows:
- In case of postal mail, send the documents to “Muang Thai Life Assurance Public Company Limited, 250, Ratchadaphisek Rd., Huai Kwang, Bangkok, 10310
Required Documents:
1. Policy(A police report is required in the event of loss), unless the Company has issued the electronic policy.
2. Policy loan contract
[
to download the form]
3. Copy of insured’s ID card certified true copy with “religion” information crossed out until the text cannot be read, and sign to certify the redaction. Otherwise, it will be deemed that you allow the Company to cross out the religion information on your behalf.
Additional document :
Copy of passbook page with name of the insured (in case of money transfer via bank account) certified true copy
- MTL Customer Service Centers Nationwide
[click to see available customer service centers]
In case the insured proceeds by him/herself
Required document:
Policy loan contract
[click to download the form]
In case the insured authorizes another person to proceed on his/her behalf
Required documents:
1. Policy (A police report is required in the event of loss) , unless the Company has issued the electronic policy.
2. Policy loan contract
[click to download the form]
3. Power of attorney
[click to download the form] with a certified true copy of ID card of both the insured and the grantee, with “religion” information crossed out until the text cannot be read, and sign to certify the redaction. Otherwise, it will be deemed that you allow the Company to cross out the religion information on your behalf.
Additional document :
Copy of passbook page of the savings or current account with name of the insured (in case of money transfer via bank account) certified true copy
- Video Call Tel. 1766 Simply call 1766 and notify that you want to exercise the right to receive policy loan. After that, choose to receive a link for communication via SMS or email, and click on the received link. The staff will confirm personal information. With just these steps, you can start using the video call service to immediately exercise your right to receive policy loan.
Duration
The Company shall consider the policy loan request and transfer the policy loan according to the contract conditions within a period of 15 days from the day the Company receives the request and complete documents. The payment will be made either in A/C payee check or bank transfer according to your request.
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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
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● 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
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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.
