ACESO launches ALIP to help LIC policyholders contemplating policy surrender

financialexpress.com:

ACESO, a pioneer institution in providing innovative solutions for insurance policyholders, has launched ALIP (Assignment of Life Insurance Policies), a unique solution designed for LIC policyholders contemplating policy surrender or experiencing lapses. ALIP provides the opportunity to receive the Surrender Value of their endowment insurance policies, even while preserving their life cover benefits.

Powered by Aceso Endowment Services Pvt Ltd, ALIP offers key features designed to provide maximum value and benefit to LIC policyholders:

* Guarantees that policyholders receive the exact surrender value as given by the LIC of India.

* Additionally, ALIP goes beyond mere surrender value consideration, providing policyholders with a clear outline of the year-wise life coverage benefits from the date of assignment up-to the Maturity Date, for their nominees; in the unfortunate event of the policyholder’s demise, even while abstaining on any further future premium commitments. All this is provided by an independent SPV Trust, managed by a SEBI-registered trusteeship company.

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Commenting on the same, Ranjit Kulkarni, Research and Strategic Acquisitions Head at ACESO, said, “LIC’s endowment policies constitute a significant 80% of its annual policy issuances, underlining their pivotal role in the insurance landscape. However, with a persistency ratio of around 50%, indicating that half of these policies do not reach maturity due to surrenders and lapses, there is a clear need for solutions like ALIP. ALIP will bridge the crucial gap by providing LIC policyholders with a viable alternative to surrendering their policies prematurely, ensuring they can unlock the