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If the lender exercises its right under the terms and conditions of the policy assignment agreement to terminate or surrender the policy, or withdraw cash value before the end of policy term:
1. The amount of benefits receivable under the policy may be substantially less than the sum of total premium paid, interest expenses incurred and early repayment penalty imposed (if applicable) under the loan contract, especially in the early years of the policy;
2. You may partially or fully lose the insurance coverage and may not be able to obtain the same insurance coverage;
3. You may lose the entitlement to dividends, bonuses, etc. under the policy;
4. The lender may apply all or part of the benefits receivable under the policy against the outstanding amounts owed by you (whether or not the outstanding amounts are under the loan facility);
5. In cases where the policy is required as part of conditions in your business or other arrangements, the termination of the policy may trigger further events of defaults in these arrangements with adverse consequences.
6.For policy details, please contact your insurance company or insurance agent for the most accurate information.
