Non-forfeiture Option

If you opt to discontinue with the future premiums, you may consider the following few options:

• to let the policy run on Automatic Premium Loan (APL) if the policy has acquired Cash Surrender Value until the Cash Surrender Value is exhausted.
• to convert the policy to a Reduced Paid-up policy according to the amount of surrender value available. Future premiums are fully paid up and you continue to enjoy the insurance cover under the original period of insurance but with reduced sum assured.
• to convert the policy to an Extended Term Assurance according to the amount of surrender value available. The period of coverage depends on the amount of surrender value available. All riders attached will be terminated. The policy has now become a term policy with original sum assured less any outstanding loans. All future premium payments cease upon conversion. The availbility of this option is subject to the type of policy purchased.
  

Cash value simply means a sum of cash refund payable upon surrendering a life policy.

APL stands for "Automatic Premium Loan". APL is typically applicable by default after your policy acquired a surrender value. It is specified in the policy contract that any amount of unpaid premium will automatically be paid through a premium loan at the end of the grace period. You would have to pay back the loan with interest. 

For the latest information on the Automatic Premium Loan Interest Rate, please refer to the “What are the interest rates?” table here. 

If the Total Investment Value is insufficient to deduct for policy fees and insurance charges, such unpaid policy fees and insurance charges shall be deducted from the rider’s cash value if the rider has acquired any cash value. The amount that deducted shall be charged with interest at the prevailing interest rates to be determined by the Company from time to time and the cash value utilised to pay for the policy fees and insurance charges together with the interest charged will become indebtedness of your policy.

If you own a whole life or an endowment insurance policy, you can take out a policy loan against the cash value that had built up in the policy. Generally, the policy will acquire cash value after being in force for three full policy years. Compound interest is chargeable on the policy loan at a rate at which the Company shall determine from time to time. Any Policy Loan outstanding will be deducted before any claims is payable. The current Policy Loan Interest Rate will be temporarily revised from 6.8% to 6.4% per annum effective 1st January 2021 and this interest rate is subject to change by the Company from time to time.

As for Great Universal Life policy, you can take out a policy loan against the policy account value net of surrender charge (if any). The Policy Loan Interest Rate is the prevailing crediting rate plus 2%. This interest rate is subject to change by the Company from time to time.

A loan is available when the policy has acquired a cash value. A policy loan based on a percentage of the gross cash value subject to deduction of outstanding loan or APL, if any can be granted. Policy loans are not available for investment-linked, HealthCare and term policies.

You can apply for loan simply by:

• Asking the assistance of your Life Planning Advisor
• Mail your request to our Head Office address or your nearest branch
• Email your request to wecare-my@greateasternlife.com
• Call in to our Customer Service Careline at 1300-1300 88
• Apply for a loan personally at our Customer Service Centre on Mezzanine Floor at the head office or the nearest branch. Our Customer Service Officers will be there to help you

Procedures
Upon receipt of your request, we will inform you of the loan available and the requirements. The requirements are:

• Loan agreement to be signed by the Policy Owner or Assignee where applicable
• Consent letter from the Trustee(s)/ Nominee/ Parent of the Nominee/ Conditional Assignee where applicable

Overdue/Late Premium Interest as specified above is applicable and payable by the policyowner when payment of premium is made after the 30 days Grace Period.

Crediting Rate will determine the credited return which will be credited every month into the policyowner's account. The actual crediting rate is not guaranteed and will fluctuate based on the investment performance. A higher credited return may be credited if the investments have performed well and conversely, a lower or negative credited return may be credited if the investments have performed poorly. A negative crediting rate will result in a reduction of Account Value.

Crediting spread for the products below is deducted on a monthly basis from the investment return prior to the crediting of the credited return into policyowner's account.