The 5196 Application Loan form, a critical document utilized by the Life Insurance Corporation of India for policyholders seeking loans against their policies issued before June 1, 1969, underscores the intricacies of managing financial assistance within the framework of life insurance policies. It outlines a process whereby individuals can request an advance on the cash value of their life insurance, agreeing to specific terms such as a 10.5% interest rate, compounded semi-annually. The form meticulously details the caveats of the loan, including the absolute assignment of the policy to the corporation as collateral, the six-month withholding period before payment is released, and the stipulations for the repayment of the advance and interest. It highlights the conditions under which the policy may be forfeited for non-repayment, the application of the surrender value towards the outstanding loan in cases of default, and the deductions from policy moneys in the event of policy maturity or the policyholder's death with an outstanding loan. Additionally, it specifies the requisite documents for the transaction, such as the policy duly assigned, receipt of the loan amount, and a declaration regarding assignment, ensuring policyholders are fully informed of the terms and the consequences of their financial decisions. This document exemplifies the careful balance between providing financial support to policyholders and safeguarding the financial interests of the insurance corporation.
| Question | Answer |
|---|---|
| Form Name | Form 5196 Application Loan |
| Form Length | 9 pages |
| Fillable? | No |
| Fillable fields | 0 |
| Avg. time to fill out | 2 min 15 sec |
| Other names | form 5196, 5196 loan form, lic loan form hindi pdf, lic loan form pdf download |
