Sell lic policy and get money in 48 hours with life cover till maturity looks attractive but beware of legal aspects other rules

A new plan lets you sell your LIC policy to a trust and receive the surrender value within 48 hours, while retaining life cover until maturity, making it appear highly attractive. However, policyholders must be cautious: such assignments must strictly comply with Section 38 of the Insurance Act, 1938, and LIC retains the right to reject transfers it deems not bona fide or in the public interest. Legal experts confirm the process is valid if all regulatory requirements are met, but customers should thoroughly understand the terms, ensure proper documentation, and be aware of potential clawback provisions if the assignment is not accepted by LIC