Policy loan

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Financial bottleneck? OK, what about a policy loan?

Life doesn't always go along with your plans. If you need money for an unexpected event, our policy loan is a good choice. The interest rate is only 2.5 percent. What's more, you continue to benefit from the advantages of your life insurance.

Good reasons for a policy loan

Low interest and quick payout

You benefit from a favorable interest rate when you get a policy loan on your life insurance. It is currently 2.5 percent and it is attractive compared to banks and other lenders. The agreed interest rate remains the same during the entire term. We will pay out your policy loan as quickly as possible after receiving and checking the documents.

Interest rates for new contracts and extensions are subject to change at any time.

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Repayment at the latest on expiry of the policy

You pay the interest on your loan during the term of your policy loan. Your loan only becomes due for repayment after the agreed period. However, you have the option to extend the loan. The loan is offset against the survival benefit at the latest when the policy matures. 

Your retirement provision is continued

If you take out a loan on your policy, your insurance contract remains unchanged. You continue to pay premiums and are insured against strokes of fate with your risk coverage in the event of death and disability. We continue to invest your capital in full and actively pay interest on it for long-term wealth building.

Calculation example for a policy loan

   Interest calculation    Settlement of the policy loan
 Amount of the policy loan   CHF 30'000  Survival benefit at maturity  CHF 80'000
 Interest rate  2.5%  Amount of the policy loan  CHF 30'000
 Amount of interest per year  CHF 750  Payment of the survival benefit  CHF 50'000

Let's assume that a person's policy expires in 2040. The person now wants to overcome financial bottlenecks in 2022 and takes out a policy loan of 30,000 Swiss francs. At an interest rate of 2.5 percent per year, the interest due amounts to 750 Swiss francs per year. The person does not have to repay the loan amount during the term of the insurance, as it is covered in full by their capital at maturity.

When the policy matures, the survival benefit is 80,000 Swiss francs. The policy loan amount of 30,000 Swiss francs is deducted from this. The person therefore receives a payment of 50,000 Swiss francs.

Frequently asked questions about the policy loan

How is the policy loan repaid?

Repayment is made at the end of the agreed loan period or the loan is extended at the currently valid interest rate. The loan is offset against the survival benefit at the latest when the policy matures.

Can I repay the loan before the end of the agreed term?

Yes, at any time. For loans of 50,000 Swiss francs or more, however, an early repayment penalty may be due depending on the interest rate situation. If the interest rate for new loans applicable at the time of repayment is lower than the agreed interest rate, an early repayment penalty will be due. This charge will be added to the loan amount.

What is a policy loan?

A policy loan is a loan taken against an existing life insurance policy. You basically receive an advance payment that is taken from the future insurance benefit. In return, you pay interest at a comparatively low level. This enables you to increase your liquid assets. At the same time, you retain the benefits of your policy and do not have to accept any financial losses that could result from surrendering the insurance.

How can I get a policy loan with Zurich?

  1. 1. Contact us to find out what your maximum loan amount is.
  2. We will send you a contract by email or mail.
  3. Sign the contract and send it back. For loans over 50,000 Swiss francs, please also enclose a copy of your ID card and the original policy.
  4. We arrange the payment. You receive the money in your account within a few days.
  5. You receive confirmation.

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