Is it better to take loan on LIC policy?

Is it better to take loan on LIC policy?

Advantages. LIC policyholders can get up to 80\%-90\% of their surrender value as the loan amount. Therefore making it one of the most attractive options in the market. Opting for a loan against LIC Policy will cost you lower interest rates compared to the usual 13-15\% of interest for personal loans.

Can I surrender LIC policy after taking loan?

Can I surrender an LIC policy against which I have availed a loan? You have the option to surrender a policy against which you have availed a loan, but the surrender value paid to you will be adjusted for the outstanding loan amount along with applicable interest.

How much will I get if I surrender my LIC policy?

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The policy can be surrendered after it has been in force for at least 3 full years. The Guaranteed Surrender value will be equal to 30\% of the total amount of premiums paid excluding the premiums for the first year and all the extra premiums and premiums for accident benefit / term rider.

Can LIC policy be surrendered before maturity?

This, in turn, results in surrender of the LIC policy before maturity, thereby substantially reducing the amount that one receives, known as surrender value. A policyholder will only be able to surrender his/her policy after having paid the premiums diligently for 3 years.

Can I surrender my LIC policy online?

First keep in mind that as of now Surrendering LIC policy is not possible ONLINE. Also, you have to surrender the LIC policy at your servicing LIC branch ONLY. Also, keep in mind that you have to personally visit the branch and request for surrender of LIC policy.

Can LIC policy be surrendered online?

What will be the surrender value of LIC policy after 5 years?

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A 100\% special surrender value is given out if the policyholder has regularly paid the premiums for five years.

How can I surrender my LIC policy without original bond?

When you lose your original life insurance policy bond, you must inform your insurer at the earliest. Visit the nearest branch of your insurer and talk to concerned authorities regarding the loss. You need to submit an application mentioning the following details: Your name in full.

Is it wise to surrender an LIC policy?

LIC policies are something which one feels comfortable to continue with, but when in the review it looks like a complete waste of money, then it’s wise to surrender the same and move ahead with better suitable products. How to Surrender LIC Policy? Visit the LIC Branch Office with the Policy bond.

How to get a loan against your LIC policy?

If you have registered for LIC e-Services, you can log into your online account and check of your insurance policy is eligible for obtaining a loan against LIC policy. If it is, the terms and conditions, interest rates and other features of the loan will be shown to you online.

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What is the surrender value of LIC endowment policy after 3 years?

In practice, the Corporation will pay a Special Surrender Value – which is either equal to or more than the Guaranteed Surrender Value.” Gaurav enquired about surrender quotes from LIC office, but he could not get any since the policy is yet to complete 3 years. Before 3 years, endowment plans don’t generate any surrender value.

What happens if LIC loan is not paid back?

LIC policy of the applicant serves as collateral for the loan. If the applicant is unable to pay back his loan, then LIC reserves the right to withhold the policy. Q7. How is loan against LIC policy different from other loans?