Taking Policy Loan would affect my LIC Policy?

LIC policy loan is given to the Policyholder on the basis of policy eligibility. Taking a Loan on the LIC Life Insurance policy would not affect the policyholder in getting the benefits of his LIC Policy at any point of time. The only thing to remember is continuously to pay the interest of the Policy loan taken. 

The rate of interest of most of the LIC plans is 9.5% yearly. The interest has to be paid every six month without delay. Otherwise, the interest pending for more than 6 months would be directly added to the principal amount pending. 

When the LIC policyholder forgets to pay the interest and the principal, and when the total amount due crosses the total premiums paid, and the bonus added to the policy, LIC may close the policy. 

It is always in the benefit of the policyholder to keep an eye on the interest of the LIC policy and pay on time.