Question & AnswerQ&A (GSIS Resolution NO. 17)
An interest of 10% per annum simple is charged on the outstanding balance (principal plus interest) beyond the loan's term or amortization period.
A penalty of 0.5% per month is imposed on the outstanding loan balance beyond the term or amortization period.
Payments are applied in the following order: 1) Penalty, 2) Interest, and 3) Principal.
The total value of the policy loan should be immediately computed and applied to the maturity value of the policy at the time of maturity, not after the maturity date.
The maturity value is the value of the endowment life insurance policy computed at the maturity date of the policy.
There is a stoppage of the grant of Carer's Allowance to those who qualified for PTD benefits effective November 2003.
Yes, those who had been receiving Carer's Allowance prior to the stoppage in November 2003 will continue to receive it.
The GSIS Board adopted the policies during Board Meeting No. 4 on February 16, 2005.
Interest is initially computed in advance for the loan term; upon maturity, any outstanding balance with unpaid interest is subject to a 10% per annum simple interest and a 0.5% per month penalty on the outstanding amount.
Carer's Allowance is no longer granted to members who qualify for Permanent Total Disability (PTD) benefits from November 2003 onwards, which could reflect a policy decision on benefits consolidation or limitations.