Explainer: Can you stop your LIC policy midway, what is the process, how much will be the loss - Newztezz Online


Friday, August 25, 2023

Explainer: Can you stop your LIC policy midway, what is the process, how much will be the loss

If you want to close the LIC policy prematurely due to lack of money or any other reason, then you need to know that how much loss you will get if you close the LIC policy prematurely and how you can close it.

Nowadays there are many investment options available in the market. One of these is LIC i.e. Life Insurance Corporation of India. Crores of people trust LIC. In this, life insurance cover is available with your savings. But many times due to lack of money, we are not able to pursue our policy. In such a situation it is better to turn it off. But many policies of LIC come with lock in period. In such a situation, can you discontinue your policy midway? If it is closed then how much money will you get and what will be the losses due to it. Today we will discuss about all these issues. Let us know what is the process to stop the LIC policy in the middle…

Question: When can the policy be closed?

Answer: If you want to close the LIC policy within 15 days of taking it, then you can easily close it. On the other hand, if it has been above 15 days, then you may be at a loss if you close the policy for 3 years.

Question: What will happen if it is closed 3 years ago?

Answer: If you discontinue your policy before 3 years, then you will not get any money. That means, the amount of premium you have paid, all your money will be lost.

Question: When can it be closed again?

Answer: Actually, LIC's policy has a lock-in period of 3 years. In such a situation, you can discontinue your policy anytime after 3 years. After this, no charge will be taken from you for closing it. If you have paid the premium of LIC for the whole 3 years, then only you can surrender it.

Question: How much money will be received after closing for 3 years?

Answer: According to Kanta Kandari, an employee working in LIC, after 3 years, after 3 years, you get back 75% of the premium paid by your LIC policy. If the policy is closed before maturity, the customers suffer a lot. Its value also decreases. That means the amount of premium paid by you in the first year will also be considered as zero.

Question: Will any document be required?

Ans: Bond document of LIC policy, Request for payment of surrender value, LIC surrender form- Form 5074, LIC NEFT form, Your bank account details, Original ID proof like Aadhaar card, PAN card or driving license, A canceled bank check , The reason for the closure of LIC will have to be given in writing.

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