Is It Beneficial To Surrender LIC Policy?

How long does it take to surrender LIC policy?

If the customer prefers a cheque payout, the process takes 8-10 days.

If the customer prefers a direct credit payout, the process takes 7-8 days(Ref).

Any Traditional policy of LIC OF INDIA can be surrendered only after 3 years from Date of Commencement (DOC) of the LIC POLICY..

Can I break LIC policy?

In case of life insurance, if you surrender a policy before the completion of its full term, you could get back a portion of the money you paid as premium, after deducting charges. This money is surrender value.

Why is surrender value less than premium?

The Maturity Sum Assured here means the Maturity Sum Assured corresponding to the term for which premiums have been paid under the policy. … In some circumstances, in case of early termination of the policy, the surrender value payable may be less than the total premium paid.

What happens if I don’t pay LIC premium?

If you do not pay your life insurance premium on time, do not worry. It can be paid during the Grace Period which is usually 15 to 30 days from the premium date. In case, you do not pay the premium during the grace period, your policy will lapse. You can revive it within three years.

Is it good idea to surrender LIC policy?

As per LIC Jeevan Anand surrender value terms – “The policy may be surrendered after it has been in force for 3 years or more. The guaranteed surrender value is 30% of the basic premiums paid excluding the first year’s premium. … Before 3 years, endowment plans don’t generate any surrender value.

How much will I get if I surrender my LIC policy?

Guaranteed Surrender Value: The policy can be surrendered after it has been in force for at least 3 full years. The Guaranteed Surrender value will be equal to 30% of the total amount of premiums paid excluding the premiums for the first year and all the extra premiums and premiums for accident benefit / term rider.

How can I cancel my LIC policy and get money back?

Documents Required for Surrender LIC Policy Download LIC Policy Surrender Form No. 5074. Take the printout and go with this form. Bank cancelled cheque leaf (your name should be printed on cheque) or bank passbook photocopy.

How is surrender value calculated?

If you discontinue the policy, the amount you will get is called the special surrender value. This is arrived at by multiplying the total paid-up value (paid-up value + bonus) with a multiplier called the surrender value factor. The surrender value factor is a percentage of paid-up value plus bonus.

What surrender means?

1a : to yield to the power, control, or possession of another upon compulsion or demand surrendered the fort. b : to give up completely or agree to forgo especially in favor of another. 2a : to give (oneself) up into the power of another especially as a prisoner.

What is LIC survival benefit?

Definition: Guaranteed survival benefits are benefit given to the policy holder during or upon completion of the policy tenure. Description: In the case of money back policies, a certain pre determined amount is paid to the insured after regular intervals. Survival benefit applies only in the case the insured is alive.

How can I check my LIC policy surrender value online?

Check LIC Policy Status Online (For Registered User)Step 1:You must visit the e-Service Portal of LIC. … Step 2:You will need to enter the login credentials namely, your User Name and Password.Step 3:Once you’re logged in your Services Account of LIC, you will see various options related to the account or your policy.More items…•

What is special surrender value in LIC?

Special surrender value = (Original sum assured * (No. of premiums paid/No. of premiums payable) + total bonus received) * surrender value factor. When one stops paying premiums after a certain period, the policy continues but with lower sum assured. This sum assured is called the paid up value.

What is surrender value?

Definition: It is the amount the policyholder will get from the life insurance company if he decides to exit the policy before maturity. A regular premium policy acquires surrender value after the policyholder has paid the premiums continuously for three years. …

What is minimum guaranteed surrender value?

Most insurers offer two options: a minimum guaranteed surrender value, which is a regulatory requirement, and a non-guaranteed surrender value. The guaranteed surrender value is a fixed percentage of your premiums—typically, it is around 30-35% of all the premiums paid minus the first year’s premium.

Is there any LIC policy for 5 years?

Jeevan Mangal Plan by LIC is a term insurance plan which can be brought for a term of 5 years only through the single premium payment option that pays returns in the form of a premium on the maturity of the plan.

What happens if I stop paying LIC premium after 3 years?

On surrendering the policy after three years, the insurance company will pay you a guaranteed surrender value equal to 30% of all premiums paid after deducting the first year’s premium. … Special Surrender value = 80% of Maturity Sum Assured if you have paid premiums for 3 or more years but less than 4 years.