Know these rules before surrendering LIC policy, otherwise there will be huge loss - Newztezz Online


Sunday, February 26, 2023

Know these rules before surrendering LIC policy, otherwise there will be huge loss

LIC policy holder can surrender his life insurance plan. However, he may have to face some losses.

LIC i.e. Life Insurance Corporation of India is a reliable investment option of India. People have more faith in the scheme of LIC, that is why people take its plans. LIC gives B benefit of saving along with life insurance coverage. You can use the amount deposited in it as an emergency fund. However, if you are in urgent need of money, then the policy holder can choose the policy surrender option to access his money.

LIC policies are surrendered for different reasons. There are many rules and regulations for this. Many times policy holders unknowingly buy a policy and later they feel that this policy is of no use at all. In such a situation, they think about surrendering the LIC policy. Apart from this, the policy can also be surrendered in case of less benefits and during emergency. Let us know when and how you can surrender to LIC.

You can surrender the policy after 3 years

Policy holders should note that the surrender of the policy can be done only after at least three years of premium payment. Surrendering the policy before maturity may result in financial loss. Because the surrender value of the policy decreases.

Surrender value is the amount equal to the value of the policy which the policy holder gets on surrendering the policy or withdrawing money from LIC. If the policy is regular, the surrender value is calculated on the basis of premiums paid for the first three years. If the policy is surrendered before three years, then no surrender value is available on it.

Policy holders who have paid premiums for the policy for at least three years are entitled to the surrender value. If you surrender the policy before three years, you are entitled to only 30 percent of the premiums paid excluding the premiums paid for the previous year.

These documents are necessary for LIC surrender

Policy holders who want to surrender their LIC policy should submit bond document of LIC policy, request for payment of surrender value, LIC surrender form, LIC NEFT form, bank account details, Aadhaar card, PAN card or driving license, canceled Few documents have to be submitted along with original ID proof like gaya bank check and reason for discontinuance of the policy.

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