Life insurance is a contract between an insurance policyholder and an insurer, where the insurer agrees to pay a sum of money (the ‘death benefit’) to the policyholder’s beneficiaries in the event of the policyholder’s death. In exchange, the policyholder pays regular premiums to keep the policy active. In this article, we will discuss How To Surrender LIC Policy, as well as some things you should consider before making the decision to do so.
Most people choose to take out life insurance to protect their loved ones financially in the event of their death. However, there are other reasons why someone might take out a life insurance policy – for example, to cover the costs of funeral expenses or to pay off outstanding debts.
Whatever the reason for taking out life insurance, there may come a time when you no longer need or want the policy. If this is the case, you may be wondering how to go about surrendering your life insurance policy.
What is Surrendering a Life Insurance Policy?
Surrendering a life insurance policy is the process of ending your contract with the insurer and getting back the money you have paid in premiums. When you surrender a policy, you no longer have any coverage under that policy – so it’s important to weigh up the pros and cons before making a decision.
How To Surrender LIC policy?
If you want to know how to surrender LIC policy, there are a few things you need to know. First, you need to find out the maturity value of your policy. This can be done by contacting LIC customer care or by logging in to your account on the LIC website. Once you know the maturity value of your policy, you can start the surrender process by filling out a surrender form. This form is available on the LIC website or at your nearest LIC branch office. You will need to submit the form along with your policy documents and identification proof. The surrender process usually takes around 15 days to complete.
LIC offers two options for policyholders who want to surrender their policies – paid-up value and maturity value. The paid-up value is the amount that you will receive if you surrender your policy before it matures. This amount is usually less than the maturity value. The maturity value is the total amount of money that you will receive when your policy matures. If you have an LIC policy with a term of 20 years or more, you can also choose to receive the maturity value in installments.
How do I surrender my LIC policy?
To surrender your LIC policy, you will need to contact your nearest LIC branch and submit a request form along with the required documents. Once your surrender request is processed, you will receive the surrendered value of your policy minus any applicable charges.
How long does it take to process a surrender request?
It usually takes about 5-7 working days for a surrender request to be processed. However, this may vary depending on the type of policy and the amount of paperwork that is required.
How much will I get back if I surrender my policy?
The surrendered value of your LIC policy will be minus any applicable charges. The amount you receive will depend on the type of policy, the surrender value, and the length of time that the policy has been in force.
What are the charges for surrendering a LIC policy?
The charges for surrendering a LIC policy vary depending on the type of policy and the length of time that the policy has been in force. However, some of the common charges include a surrender charge, an administrative fee, and a policy termination fee.
Can I surrender my LIC policy online?
Yes, you can surrender your LIC policy online through the official website of LIC. However, you will need to login to your account and submit the required request form.
How will I receive the surrendered value of my policy?
The surrendered value of your LIC policy will be credited to your bank account or sent to you via cheque. However, this may vary depending on the type of policy and the amount of money that is being surrendered.
Also Read: How To Get Loan On LIC Policy? Follow These Easy Steps
Final Words On How To Surrender LIC Policy
Now, you know the How To Surrender LIC policy, there are a few things you should know first.
First, you should be aware that surrendering your policy will likely result in a loss of money. This is because you will be giving up all the money you have paid into the policy, plus any interest that has accrued. In addition, you may also have to pay a surrender fee to your insurer.
Before making a decision, it’s important to understand all the implications of surrendering your policy. Make sure you talk to your financial advisor to see if there are any other options available to you. If you decide that surrendering your policy is the best course of action, make sure you do so in a way that will result in the lowest possible loss.