Not only can you use the insurance policy as an investment tool but you can also use it to get a loan. Financial institutions use your insurance policy as collateral and generate funds for you. Here are some ways when you can use a loan against policy.
1. Medical expense
The scheme allows you to access funds quickly for your medical expenses such as surgeries, medical bills, and check-ups.
2. Education purpose
The loan can be used to deal with educational expenses (of yourself or your children) which are tough to handle with a fixed monthly salary.
3. Wedding expense
Weddings consume a lot of money, but you need not worry about making the special day grand by using a loan against policy.
4. Start-up expense
You need finance to start your business which you can acquire from this policy. Moreover, the elaborate tenure makes it an ideal source of fund.
5. Short-term usages
The low rate of interest enables you to use this policy for your short- term purposes without any stress.
These are some ways how you can loan against policy. This enables you to fulfil your current financial needs without disrupting your assets. Choose a financial institution which is authentic and has a reputation for a hassle-free transaction.