You can surrender the LIC policy only after at least 3 years. If you do it before 3 years then you will not get any money. On surrendering the policy, you get the surrender value as per the rules of LIC.
New Delhi . There are many people who take the policy of LIC but due to some reason they do not want to continue it. The termination of the LIC policy in the middle is called surrendering the policy. Now the question comes that after how many days the policy can be surrendered. So you can surrender the LIC policy only after at least 3 years. If you do it before 3 years then you will not get any money.
On surrendering the policy, you get the surrender value as per the rules of LIC. This means, if you decide to discontinue the policy or withdraw money from LIC, then the amount you get back equal to its value is called surrender value. If you have paid the premium of LIC for the full three years, then only you will be able to get the surrender value.
How much money back
Surrendering the policy incurs a lot of loss. If you have paid premium for 3 consecutive years then you are eligible for surrender value. After that you get only 30 per cent of the premium paid but excluding the premium for the first year. Meaning the premium you have paid in the first year also becomes zero. In this way, 30 percent will be available for the remaining two years. This does not include any additional premium paid for the riders, taxes and any bonus received from LIC.
LIC Surrender Form and NEFT Form are required to surrender the policy. Along with these forms, you have to attach a copy of your PAN card and original policy documents. Along with a hand written letter you have to explain why you are leaving the policy.
Who needs paper
1. Original Policy Bond Document
2. LIC Policy Surrender Form No. 5074. (Form can be downloaded).
3. Bank Account Details
4. LIC’s NEFT Form (if you are not using Surrender Form).
5. Original ID proof like Aadhar card, Driving license or PAN card.
