LIC Policy: If you have also bought LIC policy or you want to surrender your policy, then this news is of your use.
If you have also bought LIC policy or you want to surrender your policy, then this news is of your use. Actually, many times customers buy the policy without seeing it. Later they come to know that the LIC policy is of no use to them and then they want to surrender it midway. Apart from this, the policyholder wants to surrender the policy many times due to other reasons. In such a situation, it is important to know about some rules related to it.
If you want to surrender the policy before maturity, then today we are telling you some rules related to it.
Know what are the rules of surrender: LIC also gives the option to surrender the policy to the customers, but keep these things in mind
>> If you surrender before maturity then its value gets reduced.
>> Policy surrender value in a regular policy can be calculated only if the policyholder has paid premiums for 3 consecutive years.
>> Wherein no value is given in case of surrender before 3 years.
Surrender can be done in two ways:
1. Guaranteed Surrender Value (GSV)
Under this, policyholders can surrender their policy only after the completion of 3 years of their policy. Which means premium has to be paid for 3 years. If you surrender after 3 years, the surrender value will be around 30 per cent of the premiums paid, excluding the premiums paid in the first year and the premiums paid for accidental benefits. Hence, the more late you surrender the policy, the higher the value will be.
2. Special Surrender Value
Special Surrender Value This includes (Basic Sum Assured *(Number of Premiums Paid / Number of Premiums Payable) + Total Bonus Received) * Surrender Value Factor. This is a formula by which special surrender value is achieved.
Single Premium Policy Rules
Under a single premium plan, it can be surrendered in the second year of taking the policy. If your policy term is 10 years then it can be surrendered in 2 years and if it is more than 10 years then it can be surrendered in 3 years.
