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A policy bond is a legal document that needs to be signed by the policyholder in order to avail the benefit of the loan policy. How to check eligibility.
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This document will be held by LIC if a loan against the policy is opted for.
Insurance policy loan. If you surrender your. It contains all relevant terms and conditions of the insurance policy and the option of a loan if applicable. A life insurance policy loan isnt taxable as income as long as it doesnt exceed the amount paid in premiums for the policy.
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