Taking a loan against life insurance policy is quicker, simpler, cheaper

Expect smaller loan approvals in policy's early years, which may necessitate selling of investments instead

New regulations on the surrender value of insurance policies have come into force from April 1. Surrender value is the amount paid by an insurance company when a customer ends a policy before maturity. Under the new guidelines released by the Insurance Regulatory and Development Authority of India (Irdai), a life insurance policy’s value is likely to be lower if it is surrendered within three years, and higher if it is surrendered between the fourth and the seventh year. Experts are of the view that if you need funds, you should avoid surrendering your policy and instead avail of a