Online Life insurance works really well if policyholders keep investing regularly and for long period. Insured must understand that longer he keep savings, the better is his accumulated wealth. Policyholders should not release the flow of money developing in his or her account unless he has some urgent work and unforeseen requirements for money, when policyholder may break his policy or use the loan facility available on his plan.
The conditions and terms for applying the life insurance loan are based on the plan chosen by a person. Policyholders must submit the duly filled loan application form to apply for a policy. Life insurance is the one stop solution when you require money during emergencies.
As cash value develops in a whole life insurance, insured can borrow against the accumulated money. Loan on term plans have single distinct benefit; the amount goes to policyholder’s bank account tax-free. Generally, insurers mention when your plan will be eligible for a loan.
But, insurance companies in India have proper guidelines outlining how much cash value life insurance must possess before policyholder can borrow against it.
Insured is actually borrowing from the insurer and using his or her insurance’s cash value as security.  Below are some financial conditions when a life insurance loan proves to be a sensible move:
Not Eligible for a Standard Loan or Seek Cash really Fast
In this case, the money exists already within the plan and immediately available. This policy is like an immediate source of money for emergency, medical bill etc.
Don’t Afford to Pay Policy’s Annual Premium
Don’t let your policy lapse just because you can’t afford its annual premium. Life insurance loan can keep the plan active till the death benefit turns greater than the loan amount.
Other Loan Options have Higher Interest Rates
Instead of paying expensive interest rates for a loan or pledging extra collateral for a traditional policy, opt for a life insurance loan.