ACESO Launches ALIP to Secure Life Coverage for LIC Policyholders

Mumbai, May 31 ,2024: ACESO, a pioneer institution in providing innovative solutions for insurance policyholders, has launched ALIP (Assignment of Life Insurance Policies), a unique solution designed for LIC policyholders contemplating policy surrender or experiencing lapses. ALIP provides the opportunity to receive the Surrender Value of their endowment insurance policies, even while preserving their life cover benefits.

Powered by ACESO ENDOWMENT SERVICES PVT LTD, ALIP offers key features designed to provide maximum value and benefit to LIC policyholders;

– Guarantees that policyholders receive the exact surrender value as given by the LIC of India.
– Additionally, ALIP goes beyond mere surrender value consideration, providing policyholders with a clear outline of the year

-wise life coverage benefits from the date of assignment up-to the Maturity Date, for their nominees; in the unfortunate event of the policyholder’s demise, even while abstaining on any further future premium commitments. All this is provided by an independent SPV Trust, managed by a SEBI registered trusteeship company.

Ranjit Kulkarni, Research and Strategic Acquisitions Head at ACESO, remarked, “LIC’s endowment policies constitute a significant 80% of its annual policy issuances, underlining their pivotal role in the insurance landscape. However, with a persistency ratio of around 50%, indicating that half of these policies do not reach maturity due to surrenders and lapses, there is a clear need for solutions like ALIP. ALIP will bridge the crucial gap by providing LIC policyholders with a viable alternative to surrendering their policies prematurely, ensuring they can unlock the value of their insurance policy even while safeguarding their future life coverage”.

What sets ALIP apart, as compared to receiving the surrender value from the insurer, is its swift and efficient payment process. The consideration is typically expedited within 48 hours upon the completion of all necessary documentation. Moreover, the entire documentation and KYC process is done online, to the fullest extent possible, minimising hassles for both the policyholder and their LIC agent.

ACESO’s cutting-edge systems and workflow technologies are designed to efficiently manage policy assignments and deliver prompt payouts, ensuring a seamless and secure servicing experience for clients. With ACESO, policyholders can rest assured that their policies are managed with the utmost care and professionalism, enabling them to navigate their financial journey with confidence.

ACESO, with its extensive experience and deep knowledge of the insurance industry, particularly focusing on Endowment policies issued by LIC of India, has facilitated the assignment worth of Endowment policies. The company is committed to service excellence, backed by highly skilled and efficient staff with decades of experience in life insurance asset management.

A Win-Win for all stakeholders:
– By leveraging ACESO’s services, policyholders can restructure their financial circumstances or release equity, thereby gaining greater financial flexibility and security.

– ALIP provides a continuity of income to the Insurance advisors on the premium continued to be paid by the SPV trust (Managed by a SEBI registered independent Trustee), on such assigned polices to LIC of India till maturity.”

– ALIP reduces surrender payouts to policyholders and increases the insurer’s AUM, leading to higher bonus rates and increased earnings for all its stakeholders. This innovative approach also minimizes insurer costs associated with replacing surrendered or lapsed policies, contributing to a more sustainable and efficient insurance ecosystem for its stakeholders.

A Life insurance Policy is the personal property of the Life assured and is governed by the Life Insurance Act, 1938 and Contract Act 1872, and the Life insurance policy is an actionable claim and a movable asset (As defined under Transfer of Property Act, 1882.), making the process perfectly tenable.