The LIC (Life Insurance Corporation of India) as it’s one of the best insurance companies in India. This company allows you to surrender the LIC policy.
If you are looking for a step by step guide on how to surrender LIC policy, then you are at the right place.
Here is a step by step guide on how to surrender LIC policy:
What is policy surrender?
When you surrender a policy, it means that you are discontinuing and breaking the insurance policy bond or contact with the firm. It means that after submitting, you won’t get any insurance in case of an accident. You will get only 30% of the premiums paid, and it also has some conditions.
There’s a surrender value that will pay to you, and that is only when you surrender after three or more years. This value is around 30% of the premiums paid.
Documents required to Surrender LIC policy:
I hope you got the actual meaning of surrendering the policy. To surrender a policy, you will need some essential documents these are:
1. Original Policy Bond document
It is the official document provided by the firm when buying an insurance policy.
2. LIC Policy Surrender Form No.5074
You will also require the surrender form (which may also be available online and you can download)
3. LIC’s NEFT Form
This document is optional, which means that if you don’t have or are not using the surrender form, this will be required.
4. Original I’d Proofs Like PAN Card, Driving License, or Aadhar Card.
5. Bank Account Details.
Your bank account details onto which you want the surrender value to send.
How to surrender LIC policy?
LIC has made it very simple for you to surrender the policy. It’s not much complicated as what people think. Here is the straightforward process:
1. The first step to surrender or discontinue the policy is that you will have to fill up the LIC NEFT Form & LIC surrender Form.
2. While filling up the form, you will have to attach the essential documents mentioned above which are Original I’d Proofs And the original policy bond document
3. You will also have to write the reason why you are surrendering the LIC policy. It should be handwritten (the firm may not accept a letter written from any machine & for this, you may have to do it again)
4. After doing all these tasks, the last step is to send all these documents to the firm. You can send through any means, such as by post.
5. The LIC team will review your details and other documents and will process your request accordingly.
6. The surrender value will send to your bank after reviewing and some little tasks.
This is the complete details and procedure on how to surrender LIC policy. There are some disadvantages and terms & conditions to be agreed upon. Before surrendering any policy, you must know the penalties, terms & conditions so that later you don’t realize that you did it wrong.
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