Life may be unpredictable, and now and again your economic priorities shift, main you to make adjustments to your lengthy-time period investments. LIC (Life Insurance Corporation of India) policies are one of the most famous insurance investments in India, recognized for his or her security and reliability. Read more on How to surrender lic policy online before maturity :
What Does Surrendering a LIC Policy Mean?
Surrendering a LIC coverage basically means terminating your lifestyles insurance coverage before its maturity. When you surrender the policy, you receive the give up fee, that is calculated based totally on the premium paid and the tenure of the coverage.
Why Would You Consider Surrendering Your LIC Policy?
There may be multiple motives why a policyholder can also pick out to give up their LIC policy before adulthood:
- Financial Difficulties: You may additionally face unexpected economic challenges that require on the spot price range, that can lead to the choice to surrender the policy.
- Better Investment Opportunities: Sometimes, you could discover a extra worthwhile funding option with better returns than your LIC coverage.
- Policy No Longer Required: If your economic desires or lifestyles circumstances alternate, such as your youngsters turning into unbiased or retirement nearing, you could sense that the coverage is now not wanted.
Surrendering LIC Policy Online: Is It Possible?
LIC has made large strides in digitalization through the years, however as of 2024, surrendering a LIC coverage absolutely on-line isn’t absolutely available but. Currently, LIC requires policyholders to submit a bodily shape together with certain documents for processing the give up request. However, you could initiate the technique on-line thru the LIC portal, get the vital bureaucracy, and accumulate most of the information digitally.
Steps to IRDA certificate download
Fast-Track Your Career: How to Become Star Health Insurance Agent
Best Star Health Insurance for pregnancy
How to surrender lic policy online before maturity?
Though a complete on-line procedure isn’t to be had, right here’s a step-with the aid of-step manual on the way to start the LIC coverage surrender system:
1. Log in to the LIC e-Services Portal
- First, visit the LIC e-Services portal and log in the usage of your credentials.
2. Download the Surrender Request Form
- Once logged in, navigate to the “Policy Surrender” phase. Here, you may download the surrender request form (Form 5074), which you’ll need to fill out.
3. Fill Out the Surrender Form
- Fill out the give up form cautiously, providing all of the essential info, consisting of your policy quantity, bank account info (for receiving the surrender price), and your reason for surrendering the coverage.
4. Gather Necessary Documents
- To give up your coverage, you’ll want to publish sure files along side the form, inclusive of:
- Original LIC coverage bond
- Identity evidence (which includes Aadhaar, PAN card, passport)
- Canceled cheque or a bank passbook replica
- Surrender shape (Form 5074) duly stuffed
5. Submit the Documents to the Nearest LIC Branch
- Unfortunately, LIC presently calls for policyholders to visit the nearest LIC department workplace to physically submit the surrender request form and documents. It’s critical to take the original coverage bond with you. LIC will not process the surrender without it.
6. Processing Time
- Once you put up the documents, LIC will process your surrender request. The surrender value can be credited for your bank account inside 5-10 running days after the request is authorised.
7. Surrender Value Calculation
- You can also test the surrender price on line via logging in to the LIC portal. The cost will depend on what number of rates you’ve paid and the length of the coverage. Typically, the surrender price is calculated after the of completion of three years of policy, and it’s miles a percentage of the charges paid minus any bonuses or different costs.
What Happens After Surrendering Your Policy?
When you surrender a LIC coverage earlier than adulthood:
- You forfeit the destiny insurance supplied via the coverage.
- You acquire the surrender fee, which may be less than the whole rates paid.
- You will not obtain any future bonuses or advantages associated with the coverage.
Alternatives to Surrendering Your LIC Policy
Before making the choice to give up your LIC policy, it’s important to explore alternative alternatives that can be extra beneficial:
- Policy Loan: You can take a mortgage towards your LIC policy as opposed to surrendering it. This lets in you to hold your existence insurance at the same time as gaining access to budget in times of need.
- Partial Surrender: Some LIC rules permit for partial give up, which means you could withdraw a portion of the give up cost whilst maintaining the coverage lively.
- Paid-Up Option: If you’ve finished a sure wide variety of years for your coverage time period, you can select to convert the policy into a “paid-up” coverage. This method the coverage keeps, however the sum confident and bonuses are decreased proportionally, and you not want to pay charges.
FAQs
1. Can I give up a LIC policy on-line earlier than three years?
No, maximum LIC rules allow surrender only after the of completion of three years of premiums.
2. What is the distinction between give up price and maturity price?
Surrender cost is the amount you obtain when you terminate the coverage early, at the same time as the adulthood fee is the advantage you get hold of whilst the policy completes its term.
three. Can I cancel a LIC coverage on line?
While you can’t entire the method absolutely online, you could initiate it thru the LIC portal and visit the department office for the final submission.
4. Will I lose all my premiums if I give up my LIC coverage?
You will now not lose all of your charges, but you’ll obtain handiest a portion of what you’ve paid because the give up value, relying at the coverage’s terms and the range of charges paid.