Unlocking Financial Flexibility: A Comprehensive Guide to Loans Against LIC Policies

Summary

The blog explains the process and features of securing loans against various LIC insurance policies, detailing eligibility, interest rates, and repayment terms for endowment, whole life, money back, and pension plans. It compares these loans with alternative secured and unsecured options, highlighting specifics like loan amounts and interest charged. This guide assists policyholders in making informed financial decisions.

Key Takeaways

Loans can be taken against LIC policies up to 90% of the surrender value.
Eligible plans include endowment, whole life, money back, and pension schemes.
Repayment terms involve biannual interest payments with flexible principal repayment.
Alternatives include secured options (gold, property, mutual funds) and personal loans.