Sell LIC policy and 'get money in 48 hours with life cover till maturity': Looks attractive? But beware of legal aspects, other rules
LIC policy after a few years, you get a portion of the premiums back as surrender value. Life-cover benefit stops immediately. However, a new player has entered the market with a claim of offering a potentially “more attractive” alternative. ACESO Endowment Services recently launched Assignment of Life Insurance Policies or ALIP, a one-of-a-kind programme designed especially for LIC policyholders contemplating surrendering their policies.
You can surrender your LIC policy to ALIP and get the surrender value in 48 hours
When you surrender a policy to LIC, you lose the life-cover benefit and only get the surrender value. However, under ALIP, an LIC policyholder will not only get the surrender value of the policy if he assigns it to ACESO’s India Endowment Policy Trust, but will also continue to get life-cover benefits. In case he dies, the beneficiary will receive the life insurance cover amount. As he has assigned the policy to the Trust, he does not have to pay premiums anymore.
Let's say you took a LIC policy four years ago and have paid premiums regularly. Assume the surrender value will be Rs 1 lakh, which is a discontinued value. When surrendering you will receive Rs 1 lakh but lose all future life-cover benefits. When you opt for ALIP and assign the insurance to the Trust, you will get Rs 1 lakh within 48 hours, the company claims. Additionally, you continue to have the risk benefits until the policy matures as per the quotes given before the assignment is done without paying any future premium.
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