Introduction :
The corporation grants loans on the security of Life Insurance policies to the person entitled for the same under the Contract.
Even though this facility is offered by the Corporation to its policyholders, it is advisable to take the loan only in dire necessity when no other funds are available, as such loan against the policy partially extinguishes the provision so wisely made.
The agent should advise the policyholder to preserve the original provision, by taking a further policy for the amount equal to the amount of loan availed.
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