Life Cover Policy

Life cover policies (IRDAI approved) can be accepted as security for loans or chitties, provided the surrender value of the policy is equal to the future liability of the loan or chit. The life cover policy accepted as security can be in the name of the applicant/subscriber, spouse, or any other person. In such cases, the policy must be assigned in favor of the company, and the policyholder must be a co-obligor in the agreement.