Widely read:
Most endowment plans issued by LIC allow taking a loan. The loan value is usually restricted to 80-90 per cent of the surrender value and the policy is further assigned to the Life Corporation of India (LIC) as collateral. Surrender value is the value that a policyholder would receive if he/she decides to terminate the policy mid-way, before the tenure for which the policy was originally purchased. In other words, it is the value that one would receive on closing his/her policy pre-maturely and depends on the number of years for which the policy has been run as compared to the number of years for which the policy was originally intended to be run.
This article was originally published on July 11, 2022.
