Policy Loans

from Wikipedia, the free encyclopedia

A policy loan is a form of consumer credit that uses the surrender value of a life insurance policy as security for a loan. This usually allows a lower interest rate, but especially the abandonment of credit checks and Schufa entry, as the case of a installment loan or an overdraft facility is the case. Both funded and unit-linked life insurance policies can be used as collateral. Policy loans can be obtained from the insurer itself or from banks that specialize in thisand companies in the secondary market for life insurance . The interest rates on a policy loan can vary widely.

A distinction must be made between the policy loan and the advance payment of the insurance benefit from a life insurance contract to the policyholder by the insurer or by a company in the secondary life insurance market. An advance payment represents an advance payment of part of the surrender value, with the insurance including death protection being retained in full. If the insurance contract expires, the benefits received early, including interest costs, will be deducted from the insurer's expiry benefit. These interest costs have a credit-like character. Such credit-like transactions are predominantly offered in the secondary market for life insurance.


The policy loan is in amount to the contract or by law (§ 169 VVG specific) redemption value possibly including profit shares less withholding tax limited (the loan to value ratio ).

The policy loan is an alternative to termination , exemption from contributions or the sale of life insurance.


The regular repayment is made in the amount of the agreed installments. Special repayments by the policyholder are possible.

Advance payments for unit-linked life insurance

In the case of unit-linked life insurance, the advance payment is made in the form of fund shares. When the policy loan is repaid, the policyholder must repay the value of the corresponding number of fund units, which results in an implicit interest on the loan in the amount of the fund performance; furthermore, the distributions attributable to the borrowed units during the term must be taken into account.

Pledged Insurance

If the insurance contract (e.g. as loan security ) has been assigned or pledged, the third party entitled must agree to the policy loan. The same applies to the beneficiary with an existing irrevocable subscription right.


Policy loans can have a legally different status depending on who is granting the loan. If the insurer grants the loan itself, it is not a loan in the legal sense, but an advance payment on the expected insurance benefit. The interest does not represent loan interest, but an increased insurance premium. The basis for this is the insurance contract . However, if a bank or a company in the secondary life insurance market grants such a loan, it is a loan in the legal sense. The basis for this is a separate loan contract , while the insurance contract remains in place.

Tax aspects

Life insurance is obliged to report policy loans of more than EUR 25,565.00 to the tax office.

See also

Individual evidence

  1. Study by FMH Finanzberatung , July 2, 2012
  2. Sales with precision landing. In: Kyffhäuser Nachrichten , October 11, 2012