LOAN & SURRENDER TIPS

LOAN TIPS

Loan is admissible on Whole Life Assurance (WLA), Endowment Assurance (EA) and Convertible Whole Life Assurance (CWLA) policies. Currency of policy should be minimum of 3 years in case of EA and CWLA. Currency of policy should be minimum of four years in case of WLA. Policy should be unencumbered/ unassigned. Loan Limit: (a) Whole Life Assurance Currency of Policy Percentage of surrender value on which loan is admissible More than 4 years to 7 years 60% More than 7 years to 12 years 80% More than 12 years 90%   (b) Endowment Assurance and Convertible Whole Life Assurance Currency of Policy Percentage of surrender value on which loan is admissible More than 3 years to 5 years 60% More than 5 years to 10 years 80% More than 10 years 90%   Insurant should apply on LI-35 (loan application) and send to DDM (PLI) alongwith policy document and premium receipt book. Second and subsequent loan is admissible after a year if the first loan is fully repaid. Loan interest @ 10% p.a is calculated on six monthly basis.

SURRENDER TIPS

·  Whole Life Assurance (WLA), Convertible Whole Life Assurance (CWLA) and Endowment Assurance (EA) policies can be surrendered after completion of three years and payment of premia for 36 months both in PLI and RPLI.

·  Policy should be unencumbered/ unassigned.

·  Bonus is admissible only in cases of policy which have continued for minimum 5 years.

·  Surrender value depends on the surrender factor and type and term of policy.

·  AEA policies cannot be surrendered in both PLI and RPLI.

·  You should expect surrender value to be lesser than the premia you have deposited