More or less everyone knows that LIC is an institution of India that insures people and protects them. Under 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 family in the future. They work as a kind of protective armor. But there are times people purchase LIC plan without knowing its terms and conditions. And regretting it later they think can I surrender LIC policy.
Well, if 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 details about it. Let’s now know in details about 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 Surrenders In The LIC (Life Insurance Corporation) Policy:
- 1.2 Compulsory Documents for LIC Policy Surrender Process:
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 LIC policy surrender 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 Surrenders In The LIC (Life Insurance Corporation) Policy:
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.
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
Compulsory Documents for LIC Policy Surrender Process:
The policyholder will be required to carry the following documents during the time of surrender of policy:
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 for a duplicate bond from the LIC branch.
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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.
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.