Loans Overview

Under the Credit Contracts and Consumer Finance Act 2003 (CCCF Act), lenders must provide key information to borrowers at the beginning of a loan, and at certain times during its term. This is called disclosure. Disclosure is the key information about a loan which lenders must give to borrowers. Disclosure helps borrowers understand what the loan will cost them and what the lender’s and borrower’s obligations are under the loan.

Subject to review and approval by Foundation Life, a policyowner has the option to take a loan from their Whole of Life or Endowment Life policy held with Foundation Life. Each loan amount available will differ on each life insurance policy. The minimum loan you must take is $1,000.00 with the maximum depending on the value of your policy. 

The annual interest rate on loan and premium debt is 10% p.a. on policies and loans written from 1 January 1983 and 7% p.a. for premium debt on policies written prior to 1983. Rates are reviewed at least annually.

For further information regarding taking a loan on your policy, please see Key information disclosure document.