Insurance Policy Loan Calculator

Estimate insurance policy loan cost against surrender value, interest cost, fees, and downside repayment stress.

Insurance policy loan calculator

Estimate Korean insurance policy loan limit, applied rate, monthly interest, interest accumulation, lapse risk, and product-type comparison.

Loan limit

₩28,500,000

Applied rate

4.3%

Monthly interest

₩100,938

Accumulated balance

₩31,023,777

Headroom

₩1,500,000

Lapse month

15 months

Uses calculateInsurancePolicyLoan with product-type loan ratios, base rate plus spread, legal maximum-rate warning, monthly interest, accumulated-interest lapse risk, and loan-limit comparison by product type. This English finance calculator calls the same Korean pure calculation module as the Korean page. KRW amounts, Korean tax rules, insurance terms, statutory limits, and scenario assumptions are preserved instead of the old generic percentage stub.

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Insurance policy loan guide

This English guide translates the Korean insurance policy loan calculator. The calculator calls calculateInsurancePolicyLoan and keeps loan ratio, surrender value, base rate, spread rate, existing loan, interest mode, and lapse-risk logic.

Loan limit and applied rate

Loan limit is calculated as surrender value multiplied by product-type loan ratio, minus any existing policy loan. The calculator flags when the requested loan exceeds the limit.

Applied rate equals base rate plus spread rate. The Korean constants preserve the spread-rate range, base-rate range, product-type default base rates, and the 20% legal maximum-rate warning context.

Monthly interest and accumulated interest

For monthly interest payment, the model reports monthly interest, annual interest, total interest over the selected months, and spread-only annual cost. This helps isolate the insurer spread from the base rate.

For accumulated interest mode, the model compounds unpaid interest and estimates accumulated balance, accumulated interest, headroom against surrender value, and lapse month. Lapse risk is flagged when accumulated debt can reach surrender value within the selected period.

Policy loan versus surrender cash

The result compares policy loan cash with surrender cash and also shows product comparisons by product type. Savings insurance, variable insurance, protection insurance, and annuity insurance can have different loan ratios and base rates.

A policy loan avoids immediate surrender but can silently reduce contract value if interest is not paid. The Korean page therefore treats loan limit, total debt, headroom, and lapse month as core decision metrics.

Korea-specific assumptions

Policy-loan rates, loan ratios, surrender values, and lapse rules are insurer-specific. This Korea-based calculation preserves the formula but cannot replace the actual insurer loan quote or contract terms.