If you are also thinking of surrendering the policy, then first know the rules and regulations. Discontinuing the LIC policy midway is called surrendering the policy. You can surrender the LIC policy only after at least 3 years.
New Delhi . After Corona, there has been an increase in the surrender rate of LIC’s life insurance policy. According to a media report, in 2020-21, the speed of surrender of the policy has more than doubled as compared to earlier. If you are also thinking of surrendering the policy due to financial crisis, then first know the rules and regulations.
Discontinuing the LIC policy midway is called surrendering the policy. YouLICThe policy can be surrendered only after at least 3 years. If you do before 3 years then you will not get any money.
Surrender value
On surrendering the policy, you get surrender value based on LIC rules. This means if you decide to discontinue the policy or withdraw the money from LIC, then the money you get back equal to its value is called surrender value. If you have paid the premium of LIC for the whole three years, then only you will be able to get the surrender value.
How much money back
Surrendering the policy incurs huge losses. If you have paid premium for 3 consecutive years then you are eligible for surrender value. After that you get only 30% of the premium paid but excluding the first year’s premium. Means the premium money you have paid in the first year also becomes zero. In this way, 30 percent will be available for the remaining two years. This also excludes any additional premium paid for 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 documents of the policy. A hand written letter has to be given stating why you are leaving the policy.
Which paper do you want
1. Original Policy Bond Document
2. LIC Policy Surrender Form No. 5074. (Form can be downloaded).
3. Bank Account Details
4. NEFT form of LIC (if you are not using surrender form).
5. Original ID Proof like Aadhaar Card, Driving License or PAN Card.
