If the Policy is still in force, having incurred Cash Balance, the policy may be pledged as loan security.
The policyholder shall submit:
The original or duplicate policy.
Copy of of ID Card/Driver's License (2 sheets) and presenting its original.
Copy of the last premium receipt (2 sheets) and presenting its original.
Filling out/signing the application for policy loan (provided by Bumiputera).
TERMS OF AGREEMENT
The currency of policy loan is the same as the currency of loan policy.
The amount of loan shall be 60% of the Cash Balance.
Cash Balance is calculated based on the policy age.
Policy age is calculated based on the amount of total premium payment by the time of Cash Balance calculation.
Interest rate shall be defined by the Payment/loan interest collection agent.
Put into priority before the installment.
Not to be subject of deduction or discharge if, for any reason, the Agent is unable to serve the collection of and payment for policy loan installment and interest.
In the event that when the payment of benefits or Sum Insured, there is a remaining policy loan, then the remaining loan and its interest shall be deducted from such payment.
If due to the failure of the policyholder to pay the installment and/or loan interest, the outstanding loan and interest become equal to or greater than the Cash Balance, then the loan policy shall render null and void. AJB Bumiputera 1912 shall then be entitled to take compensation for the policy loan and interest.
If the loan policy has expired and after the lapse of 3 (three) months it has not been managed by the policy holder or the lawful party thereto, AJB Bumiputera 1912 may proceed the settlement of expired loan policy. Non-IDR loan policy shall be settled based on the exchange rate or IAJ on the first day of the contract expiry.
COLLECTIVE INSURANCE Principally, Collective Life Insurance has no policy loan, but if the Policy Holder desires so, it will set forth separately.