Can I surrender LIC policy? There are times when people came into an agency’s influence and thus end up buying insurance that they don’t need. In such cases, they want to surrender their insurance policy.
More or less everyone knows that LIC is an institution of India that insures people and protects them. LIC (Life Insurance Corporation of India), they offer different types of insurance policies. By taking advantage of it, people get coverage during the emergency of themselves and their families in the future.
They work as a kind of protective armor. But there are times people purchase the LIC plan without knowing its terms and conditions. And regretting it later they think can I surrender LIC policy.
Well, if you are too wondering can I surrender LIC policy then let me tell you that YES you can surrender LIC Policy only after completing 3 years of your premium payment. So in case you are thinking can I surrender LIC policy then you must know in detail about it. Let’s now know in detail about the LIC policy surrender process to understand can I surrender LIC policy.
What Is LIC Policy Surrender?
- 1 What Is LIC Policy Surrender?
- 1.1 Types Of LIC Surrenders:
- 1.2 How Can I Surrender LIC Policy & What Are The Compulsory Documents Needed:
The LIC (Life Insurance Corporation) policy surrender is an option to exit from your LIC insurance policy even before maturity. In this LIC policy surrender, the policyholder gets an amount that is called Surrender Value. A fixed premium plan will be qualified for the surrender of LIC policy after you have paid your premiums constantly for 3 years.
By surrendering the LIC (Life Insurance Corporation) policy, you won’t be able to get profit as the company will pay you a certain part of the total premium you paid and the accumulated bonus.
Types Of LIC Surrenders:
There are typically 2 types of LIC policy surrenders accessible. These two types of LIC policy surrenders are as follow:
Guaranteed Surrender Value in LIC Policy:
Under the guaranteed surrender value of LIC policy, you can surrender your policy merely after completing 3 years. The guaranteed surrender value delivered by the LIC (Life Insurance Corporation) is basically 30% of your premiums you paid.
However, the premiums of the first year of your policy will be excluded, and the premiums paid headed for term rider and accident benefit will also be excluded. Do you know how to check surrender value of LIC policy?
Special Surrender Value in LIC Policy:
In case you have paid your premiums on a regular basis for over 3 years, however below 4 years then 80% of your total sum assured (maturity) amount is delivered by LIC (Life Insurance Corporation) to you.
If you have paid your premiums on a regular basis for over 4 years, however below 5 years then 90% of the total sum assured (maturity) amount is delivered by LIC (Life Insurance Corporation) to you.
You will receive 100% of the sum assured (maturity) if you have regularly paid the premiums for over 5 years
How Can I Surrender LIC Policy & What Are The Compulsory Documents Needed:
The policyholder will be required to carry the following documents during the time of surrender of policy as well as the LIC surrender form. So, let’s the know what documents you will need for the LIC surrender procedure/LIC surrender process:
The Original Print Of Your Policy Bond
At first, you must deposit the original Policy Bond, which you got after purchasing your LIC policy. If for some reason your bond is lost, then you will have to insist on a duplicate bond from the LIC branch.
While surrendering LIC policy, you also have to give an affidavit. On which you have to give LIC related and your personal information and why you want to surrender the LIC policy.
Proof of identification (ID)
You also have to submit a document related to the identity card such as Aadhaar card or voter ID, or Pan Card, etc. on which your correct name, age, etc. are present
One Cancelled Cheque:
You will also have to attach one canceled cheque with all the other documents to surrender your LIC insurance policy.
After all these necessary documents have been deposited to the concerned officer, your surrender amount will come in your bank account within a few days. This is how to close LIC policy before maturity.
However, if you are searching for ways on how to surrender LIC policy online before maturity, then let me tell you that LIC doesn’t provide the online facility for surrender to date.
The LIC Insurance Corporation normally pays special surrender value of LIC to you if you wish to surrender your policy after completion of 3 years of your policy. However, the special surrender value is completely reliant on the time period for which your premiums are paid & the time period of your LIC policy on your surrender date.
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