I have an endowment plan. Could I take a loan against my life insurance policy? What is the procedure? Will this affect my maturity amount?
Yes, you may take a loan against your life insurance policy, once it acquires a guaranteed surrender value (GSV). To initiate the process, you have to give a written request at the branch. The company will fill you about the eligibility. Based on your confirmation and the required documents, the loan shall be processed and the amount deposited in your account. Subsequently, you will receive a loan repayment schedule, with the details regarding interest rates, equated monthly instalments (EMIs) and loan term.
The loan will not affect your maturity amount, provided you pay all future due premiums and your EMIs on time. In default, the company may decide to adjust the loan amount from the policy's cash value and lapse the policy.
An agent approached me, saying he can offer me policies from two different insurance companies? Is this legal?
If both the insurance companies are life insurers, then he is not authorised to sell two policies. However, he might do so if one is life and another is general insurer. Check the details before lodging a complaint. In case you want to make one, write to the grievance redressal officers of the respective insurance companies.
Yes, you may take a loan against your life insurance policy, once it acquires a guaranteed surrender value (GSV). To initiate the process, you have to give a written request at the branch. The company will fill you about the eligibility. Based on your confirmation and the required documents, the loan shall be processed and the amount deposited in your account. Subsequently, you will receive a loan repayment schedule, with the details regarding interest rates, equated monthly instalments (EMIs) and loan term.
The loan will not affect your maturity amount, provided you pay all future due premiums and your EMIs on time. In default, the company may decide to adjust the loan amount from the policy's cash value and lapse the policy.
An agent approached me, saying he can offer me policies from two different insurance companies? Is this legal?
If both the insurance companies are life insurers, then he is not authorised to sell two policies. However, he might do so if one is life and another is general insurer. Check the details before lodging a complaint. In case you want to make one, write to the grievance redressal officers of the respective insurance companies.
The views expressed are expert's own. Send your queries to yourmoney@bsmail.in
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