The GSIS Compulsory Life Insurance Policy Loan is a loan facility offered by the Government Service Insurance System (GSIS), allowing members to borrow against the value of their active life insurance policies. This program is available to GSIS members who hold either a Life Endowment Policy (LEP) or an Enhanced Life Policy (ELP).
The loan amount varies depending on the type of policy, with LEP holders eligible for up to 50% of the accumulated cash surrender value, and ELP holders eligible for up to 70% of the accumulated termination value of their policy.
The loan carries an 8% annual interest rate and can be repaid either through monthly payments or deducted upon the maturity or termination of the policy. It is a flexible financial option designed for active GSIS members who are looking for assistance without the need for collateral.
Who Can Apply?
Before diving into the application process, it’s important to determine if you are eligible for the loan. The eligibility requirements are as follows:
- Active GSIS Life Insurance Policy: You must have either a Life Endowment Policy (LEP) or Enhanced Life Policy (ELP) that has been active for at least one year.
- Active Service: Applicants must be currently employed in government service and have their life insurance premiums up-to-date.
- GSIS eCard: You must possess a GSIS eCard that is activated for transactions.
- No Pending Cases: Applicants should not have any pending administrative or criminal cases.
Loanable Amount and Terms
The amount you can borrow depends on the type of GSIS policy you hold:
- Enhanced Life Policy (ELP): You can borrow up to 70% of the accumulated termination value of your policy.
- Life Endowment Policy (LEP): You can borrow up to 50% of the accumulated cash surrender value of the policy.
This loan comes with an 8% annual interest rate, compounded annually. Borrowers have two repayment options:
- Fixed Monthly Payments: A fixed amount will be deducted from your salary monthly until the loan, including interest, is fully repaid.
- Payment upon Maturity: You can opt to pay the loan balance, including interest, when your policy reaches maturity, lapses, or is terminated.
Required Documents
Before applying for the GSIS Compulsory Life Insurance Policy Loan, you will need to prepare the following:
- Policy Loan Application Form: This form can be downloaded from the GSIS website or acquired from any GSIS branch.
- GSIS UMID Card: A photocopy or scanned version of your GSIS UMID card is required. If your card is lost, you may submit two valid government IDs instead.
Application Form
The GSIS Regular Policy Loan Application Form is important for members who wish to apply for a loan against their active life insurance policy. This form is required for both Life Endowment Policy (LEP) and Enhanced Life Policy (ELP) holders.
You can download the application form directly from the GSIS official website by clicking here.
Once completed, the form can be submitted through various methods, such as via GWAPS kiosks, eGSISMO (GSIS’s online portal), or email. Simply follow the instructions provided to ensure a smooth application process. If you have further questions, feel free to visit the GSIS website or contact your nearest GSIS branch for assistance.
How to Apply for a GSIS Compulsory Life Insurance Policy Loan
There are three primary ways to apply for a GSIS Compulsory Life Insurance Policy Loan: through a GWAPS Kiosk, eGSISMo, or via email. Below is a detailed step-by-step guide for each method:
1. Via GWAPS Kiosk
GSIS members can conveniently apply for the loan using the GSIS Wireless Automated Processing System (GWAPS) kiosks. These kiosks are available at GSIS offices, select government agencies, and malls.
Steps:
- Place your UMID-compliant GSIS eCard on the kiosk’s card reader.
- Confirm your identity by placing your finger on the biometric scanner.
- Select “Policy Loan” from the available transaction options.
- Once again, place your finger on the biometric scanner to confirm the loan.
- After completing the transaction, press “Logout.”
2. Via eGSISMo
If you prefer applying online, the eGSISMo platform allows you to process your loan application from the comfort of your home or office.
Steps:
- Log in to your eGSISMo account using your BP number and password.
- Click on the “Loans Application” icon, then choose either Regular or Optional Policy Loan, depending on your preference.
- Select the loan type (New or Renewal) and your preferred payment scheme (Monthly Payments or Payment upon Maturity/Termination of the Policy).
- Upload a picture of yourself holding your UMID or temporary card. If you do not have your card, you can upload two valid government IDs (saved as JPEG or PDF files).
- Confirm the loan agreement and click “Save.”
- Await an email confirmation from GSIS for further instructions.
3. Via Email
If you prefer to process your application via email, GSIS also offers this option for convenience.
Steps:
- Download and fill out the Policy Loan Application Form from the GSIS website.
- Scan your filled-out application form and your GSIS UMID card (or two valid government IDs if the card is lost).
- Save the documents as JPEG or PDF files.
- Send the documents to your GSIS handling branch. A list of email addresses for GSIS branches can be found on the official GSIS website.
- Wait for an email confirmation from GSIS with further instructions.
What Happens After Applying?
After submitting your application via your chosen method, you will receive a confirmation email from GSIS that acknowledges receipt of your loan application.
The email may also provide further instructions or ask for additional information if needed. Upon approval, your loan proceeds will be credited to your GSIS eCard account.
Frequently Asked Questions
- How much can I borrow?
The loanable amount depends on the type of policy you have. For ELP holders, you can borrow up to 70% of the termination value, while LEP holders can borrow up to 50% of the cash surrender value.
- Can I renew my loan?
Yes, you can renew your loan once the outstanding balance has been sufficiently reduced. Loan renewal can be done using the same application procedures listed above.
- How is the loan repaid?
You can either opt for fixed monthly payments or pay the loan in full when your policy matures, lapses, or is terminated. The interest rate is 8% annually.
- How long does it take to process the loan?
Processing time varies depending on the application method used. Applications through GWAPS Kiosk or eGSISMo are generally processed faster compared to email applications.
- What happens if I default on my loan?
If you default on your loan, GSIS will deduct the outstanding balance, including interest, from your policy benefits upon maturity or termination of your life insurance policy.
Conclusion
Applying for a GSIS Compulsory Life Insurance Policy Loan can provide much-needed financial assistance in times of need. With three convenient methods—GWAPS Kiosk, eGSISMo, and email—you can easily submit your application and receive funds based on your GSIS life insurance policy’s accumulated value. Whether you prefer monthly payments or repayment upon policy maturity, this loan is a flexible option for GSIS members.
Make sure to review all requirements and understand the repayment terms before submitting your application to avoid any future complications.