⚠️ NOTICE: Great Eastern offices and branches nationwide will be closed on 16/09/2024 (Monday), Public Holiday and 17/09/2024 (Tuesday), Replacement Holiday. We apologise for any inconvenience caused.
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
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
Description
Current Rate (% per annum)
Policy Loan interest
6.3% per annum effective 1st January 2022
Policy Loan interest (Great Universal Life, Premier Heritage, Premier Legacy, Premier Legacy 2, Premier Legacy 3, Glorious Legacy)
Prevailing crediting rate plus 2%
Automatic Premium Loan interest
Indebtedness with interest (IL Invest Assure Rider & IL Cash Assure Rider)
Overdue Premium Interest (Max Multiplier, Max Step-Up)
6.3% per annum effective 1st July 2022
Note: The rates above are subject to change by the Company from time to time.
Overdue/Late Premium Interest
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
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
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.
