What is Automatic Premium Loan (APL)?
APL means that your policy cash value is used for your unpaid policy premium. This will go on until your cash value is used up. APL is only applicable if your policy has cash value and your premium is 30 days past the grace period.
What is the interest charged?
Interest is charged on the APL at 5.5% per annum and is calculated on a daily basis.
How do I apply for APL?
You need not apply for this. As long as your policy has cash value and the premium is not paid within the grace period of 30 days, APL will automatically be raised to keep your policy in force.
This enables the Company to continue extending the insurance coverage to you and, at the same time, add reversionary bonus to your policy as if premium were paid.
How do I know if my policy is on APL?
We will send you quarterly APL notices if you are paying your premium monthly or quarterly. Otherwise, APL notices will be sent to you either on a half-yearly or yearly basis.
How long can my policy last under APL?
We are unable to confirm how long your APL can last, as this depends on the cash value, which in turn depends on the actual bonus declared each year. While under APL, you will be informed of the date the policy is expected to lapse before the cash value is completely depleted by the total indebtedness.
Do I have to repay the APL?
We would like to recommend that you continue to pay your premiums by cash or cheque instead of activating the APL provision so that your insurance coverage is not reduced or even terminated. APL is recommended only as a short-term measure.
How do I repay the APL?
You may make full or part repayment at your convenience. However, you are advised to repay the APL as soon as possible. This is because when the Cash Value is used up, your policy will lapse. We recommend that you repay by cheque.
What happens if I do not repay the outstanding premium? Any outstanding APL payment will be deducted from your Lion payment or maturity claim. Once your cash value is used up, your policy will lapse.
What is Cash Benefits Payment?
Cash Benefits payment refers to either Survival Benefits (three- or five-year interval) or Cash Bonus (yearly interval), which are payable at regular intervals during the term of the policy, provided the policy is in force.
What are some of the plans with Survival Benefit Payments?
Some of the plans are as follows:
Family 3
Annual Cashback Endowment
Dynamic Prolife (pays out both survival benefits and cash bonus)
SaversLife
What are some of the plans with Cash Bonus Benefit Payments?
Some of the plans are as follows:
Dynamic Prolife with Cash Bonus
Dynamic Living Assurance Plan with Cash Bonus
FlexiLife 60 with Cash Bonus
What can I do with the Cash Benefits Payment?
Depending on the options that you have chosen at the start of the policy, you can either withdraw the amount as and when it is due, use it to pay for your premium, or simply keep it with our Company to earn interest.
My Survival Benefits was used automatically to pay for my outstanding premiums/policy loans without my authorisation. Why?
The contract has provided for this. If there is any outstanding indebtedness (policy loan or APL) attached to the policy at the time the survival benefit is payable, the Company will automatically use it to offset the indebtedness first. Only the balance will be paid out or left on deposit with the company, depending on the cash benefit option (refer to Question 4 above).
What is the interest rate if the Cash Benefit is kept with the Company?
Our current interest rate is 2.5% per annum. This deposit interest rate will be reviewed on a regular basis to reflect the future investment and interest climate.
My Cash Benefit is currently on deposit with your Company. Can I withdraw it at any time?
Yes, you can withdraw the Cash Benefits together with any interest accumulated up to the date of withdrawal at any time. Interest is calculated on a daily basis.
Click here for the online withdrawal form. Please print, complete and mail it to us for our processing. The cheque will be sent out to you within seven working days upon receipt of your withdrawal form.
I have received a Cash Benefit cheque from Great Eastern. Can I return the Cash Benefit cheque for deposit with you?
You can deposit the cash benefit cheque with us only if it has not been presented. However, there is an administrative charge of $30 per cheque. If the cash benefit cheque has been presented, it cannot be returned for deposit with the Company.
Is this Cash Benefits the same as the amount shown in the Bonus Statement that I receive from Great Eastern?
No. Cash Benefits are special benefits given and are different from the Bonus paid yearly to participating policies.
On the other hand, the Bonus Statement is to inform you of the Bonus that was allocated to your policy for a specific year. A Bonus is an annual payment from the Company’s surplus given to policies with participating profit.
What is a Policy Loan?
It is an advance payment granted to the policyholder after the policy has a cash value. You can use this loan to meet your short-term financial needs.
When can I apply?
You can apply for a policy loan once your policy has cash value. The cash value will be available about two to three years after you have bought the policy. However, this does not apply to some plan types, such as Investment-Linked and Term policies.
How much can I borrow?
You can borrow up to 92% of the policy cash value, depending on the type of policy you have.
What is the interest charged?
Our current interest is 6% per annum, calculated on a daily basis on the outstanding loan.
When do I repay the loan?
You may make full or part repayments of the loan at your convenience. However, you must continue to pay your premium to keep your policy valid. Otherwise, your policy may eventually lapse. As a guide, we suggest you repay your loan within a year or two.
How can I repay the loan?
You can pay by cheque or cash. The minimum loan repayment instalment is $50. When the remaining loan balance is less than the instalment amount, the final repayment instalment will be the balance amount.
Will my policy cover be affected by the loan?
Yes. You must continue to pay your premiums to keep the policy in force. When any policy benefits (such as cash benefits or maturity value) are due to you, this will be used to offset your loan, before the balance is made to you.
How to apply for a loan?
Contact your Distribution Representative, who will be able to assist you. Drop by our office personally to apply for a policy loan.
What will be my maximum loan available now?
You may email us at wecare-bn@greateasternlife.com or call us at 2233118 to check the maximum loan available.
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