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As surrendering an insurance policy may result in substantial loss, taking out a loan against the policy would be a better option.

Need funds after job loss? Your life insurance policy may help you get it in an easy way

People facing job loss or salary cuts may be in financial distress and need funds urgently to meet their day-to-day expenses.

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Many people have lost their jobs as economic activities have almost stalled due to the nationwide loackdown that has been imposed to contain the spread of highly contagious Novel Coronavirus COVID-19. People facing job loss or salary cuts may be in financial distress and need funds urgently to meet their day-to-day expenses.

Unless you have large savings, sustaining would get tougher each passing day without a regular source of income. Once savings dry up, you may break your investments, unless you lose a substantial amount by doing so.

In absence of adequate savings and liquid investments, you may have to borrow money. For this you have to find the cheapest available source of taking a loan.

While loans against assets or securities come in a cheaper way, taking a personal loan is very expensive.

If you have taken an endowment life insurance policy, it may come to your rescue at this moment of crisis.

As surrendering an insurance policy may result in substantial loss, taking out a loan against the policy would be a better option.

Depending on the type and duration of a policy, you may take a loan against it either from a bank or from the insurance company that issued the policy.

Compared to taking a loan against an insurance policy from a bank, it is much easier and beneficial to take the loan from the insurance company.

The benefits of taking loan against insurance policy from the insurance company are as follows:

The point to be noted is that a loan may be taken against an insurance policy that has maturity/surrender value. So, no loan may be taken against a pure-risk policy like a term insurance policy.