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ADVANCES AGAINST LIFE INSURANCE POLICY

 

The policy should be scrutinised. There are certain policies which cannot be legally assigned. The policy which is operative at least for three years be accepted. A policy already assigned should not be accepted. Age of the insured should have been admitted. The borrower should be advised to produce a letter from the insurer indicating surrender value of the policy. Quantum of loan should not exceed 90% of the surrender value. An absolute assignment in favour of the bank should be obtained in a prescribed form.

Re Payment of Loan/Advance against LIC Policy should be paid within 36 To 60 months maximum.