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Policy Loan

If you need money unexpectedly you can withdraw a certain amount from your policy without loosing insurance coverage!

1. What is a Policy Loan?

A policy loan puts the policyholder in the position to withdraw a maximum of 80% of his surrender value, without cancellation of the contract. The insurance coverage shall continue, if the premiums due and the interest will be paid regularly.

2. Who is entitled to take a policy loan?

The policyholder

3. Which regulations do apply when taking a policy loan?

The minumum policy loan amount is USD/EUR 3000,00. By the date of application for a policy loan the contract must have been valid for at least three years. A policy loan for a contract free of premium is not possible (decisive is the delivery date of the premium free policy amendment) An existing premium credit (pay account) shall not be considered for calculation of the policy loan basis.

4. How much does it cost to take a policy loan?

The interest rate for the policy loan amounts to 7% annually, to be paid in advance.

5. Are there any further expenses to be considered?

Medlife will not charge any additional fees for granting a policy loan. Please be aware of the expenses that may arise in connection with the transmission of money and that are beyond our influence. On the one hand there will be bank charges for the transmission to your account, on the other hand the transmitting bank will charge you for the repayment of the policy loan to your policy account.

6. Can I pay my renewal premium(s) with the policy loan?

Renewal premiums already debited to the policy will be balanced with the policy loan automatically when granting the loan. Further premium payments will have to be made separately.

7. Which amount shall be paid out if I take a policy loan?

The policy loan amount
minus amount of interest
minus debited renewal premium

8. How can I apply for a policy loan?

Please pay attention to the information shown above for the preconditions to take a policy loan. If your policy meets the criteria, please inform us in writing, which amount you intend to take as a policy loan. In addition we need a copy of your passport. Following your application you will receive a written offer. After having received back from you the completed form provided with your signature and banking details, the amount payable will be transmitted.

9. How do I pay back the policy loan?

The payment of due renewal premiums shall be effected with the renewal premium vouchers issued by Medlife Insurance Ltd.
The policyholder is obliged to care for the repayment of the policy loan himself, there will be no separate reminder for the repayment of the loan.
Policy loan repayments shall be made to the Medlife renewal premium account as follows:

AIK Banka a.d. Beograd

Bulevar Mihaila Pupina 115D

11070, Novi Beograd,
Republika Srbija



Account EUR/USD- contracts

IBAN: RS35105312012100032634

Correspondent bank Euro:


Correspondent Bank USD


270 Park Ave 12, New York, USA,

Purpose: Policy-No., Name of Policyholder and Remark "Repayment for policy loan"

10. In which way will repayment rates be balanced to my policy account?

Incoming payments will be credited according to the following priority:
1. outstanding premiums
2. amounts of interest
3. policy loan

11. What will happen if I do not repay my policy loan?

As long as the interest and the due premiums are paid on time, the contract will remain upright with full insurance coverage. In case of non-payment of due premiums, we will surrender the contract. The contract will be cancelled and the remaining amount transmitted to the policyholder.


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