New Delhi, April 24 -- Running a life insurance plan requires a long-term commitment. When paying premiums becomes difficult, policyholders surrender their policies, ending their life cover. A couple of new-age insure-techs have found an alternative using an old provision: Section 38 of the Insurance Act, 1938.

The section allows a one-time assignment in which the policyholder can assign his or her policy to an entity or an individual in exchange for some payout equivalent to the surrender value. The death benefit continues, partially depending on the agreement between the assignor and the assignee.

While Aceso Endowment Services and ValuEnable only offer it for traditional life insurance policies, Policy Exchange focuses on Ulips.

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