Question

What is a key requirement for applying for a life insurance policy loan?

Answer 1

policy loan on a life insurance

A policy loan is issued by an insurance company and uses the cash value of a person's life insurance policy as collateral. Sometimes it is are referred to as a “life insurance loan.” Traditionally, policy loans were issued at a very low interest rate, but that is no longer universally true.

Claims Under Regular Life Insurance Policies
Death Claims:
The person legally entitled to receive the policy monies should give intimation of death of the policyholder to the servicing Branch. The requirement for the claim are as given below:

1. Claim Form 'A' in Form No.3783.
   If policy has run for 3 years or more from date or risk, claim form no.3783A may be used.
2. Certified extract from death register.
3. The original policy document with Deed/s of assignment/s, if any. (Additional requirement may be required under a policy according to the status of the policy. Please contact our servicing Branch for details).

   Maturity Claims:

4. It is our endeavour to settle your maturity claim on or before the due date. The servicing Branch usually sends maturity claim intimations two months in advance.
5. Please submit your Discharged Receipt in Form No.3825 with original policy document atleast one month before the due date so that the payment is received before the due date of maturity claim.
6. If you have not received any intimation for your claim due in the next two months, please contact the servicing Branch immediately.