**IMPORTANT: With effect from September 1, 2016, Zurich no longer accepts any new loan applications for Vista in Hong Kong.
1. International Policy Loan Application ([P2])
2. CS eform
3. Policy document or, in the event that they cannot be found, the lost policy indemnity form (which is included in the International Policy Loan Application) (Updated: 25 Nov 2015)
4. A policy which takes a loan from Zurich will have part of their fund holding switched into the Guaranteed Fund (GAF).
5. The policy can sustain for at least two years after a loan is granted
6. That the maximum amount of the loan plus two years worth of charges and interest in no more than 90% of the surrender value
In order to minimize the risk to the company and to the policyholder that the policy lapses as a result of (2) and (3), part of the fund holding is switched into GAF. The calculation of this is:
Percentage of the fund value switched into GAF = [Loan amount + two years worth of charges and interest] divided by [90% of the surrender value].
Example
Fund Value: 600,000
Surrender Value: 300,000
Loan Amount: 108,000 (loan amount plus two years worth of charges and interest)
Percentage of the fund value switched in to GAF = 108,000 / (90% * 300,000) = 40%
So, in this example, we would switch 40% of the current fund value into GAF.
This is 600,000 * 40% = 240,000.
The value of the switch (240,000) is much higher than the loan amount (108,000). This is to ensure that if the policy surrenders, there is still enough surrender value from the 240,000 to re-pay the outstanding loan. In this case, the current surrender penalty is 50% so if the policy surrendered just after the loan was taken out, there would be a surrender value of 120,000 from the 240,000 fund value invested in GAF. We would re-pay the loan and return any excess surrender value from the rest of the policy to the client.
7. Please refer to the loan application form for details and terms and conditions. (Updated: 25 Nov 2015)
Zurich Customer Hotline: 3405 7150 (for general enquiries ONLY)