Can I get my money back from LIC?
Asked by: Roberto Zemlak | Last update: January 10, 2026Score: 4.6/5 (63 votes)
Will I get my money back if I cancel my LIC policy?
LIC's Rules About Policy Surrender
If you are sure that you want to cancel the LIC policy, here is what you need to know: You will not get any of the premium amounts paid in the first year in your surrender value. In general, the surrender value is returned to the policyholder at 30% of the premium amount.
Can I withdraw money from my LIC policy?
A policyholder can surrender his/her policy only after three years, i.e., it must have been in force for at least three years. The surrender value provided by LIC is essentially 30% of the premiums that have been paid so far.
How much money will I get if I surrender my LIC policy?
How much money will I get if I surrender my LIC policy? In case you surrender your LIC after 3 years, your surrender value will be approximately 30% of the total premiums paid. However, the premium paid for the first year and the premiums paid towards accidental benefits coverage riders are excluded from it.
How long does it take to get money from LIC?
LIC mostly takes less than 30 days to settle standard death claims. In the case of claims requiring further verification, LIC can take anywhere between 60 days to 6 months, depending on the nature of the death and the number of days of risk under the policy till death.
How to get rid of LIC Policy? | Surrender LIC Policy | Surrender Value explained
Do we get money back in LIC?
It is a money-back plan that comes with a bonus option. Premiums need to be paid for 15 years only while the policy continues for 20 years. If the Life Insured is alive at the end of the 5th, 10th, and 15th years, 20% of the Basic Sum Assured is paid as Survival Benefit, and the policy continues.
How to get LIC money back amount online?
Yes, you can claim the LIC maturity amount online by registering and logging into the official LIC website, where you can submit your claim. Additionally, you can check your policy's maturity amount and initiate the claim process through the LIC customer portal.
Is it good to surrender LIC?
Surrender of policy is not recommended since the surrender value would always be proportionately low. Should you decide to go in for another insurance at this stage further insurance would be available to you at a much higher premium because your age would have advanced since taking out the earlier policy.
Do you get money back when you surrender a life insurance policy?
Your insurer will terminate the coverage and send you a check for the policy's cash surrender value. Cash surrender value is the money a life insurance policyholder receives for ending their coverage before the policy's maturity date or before they pass away, minus any surrender fees and taxes on earnings.
How much will I get from my LIC policy?
Check LIC Maturity Amount Through SMS
Type ASKLIC with the policy number and send it to 56767877.
What happens if you stop paying LIC?
Revivals: If premiums under a policy are not paid within Days of Grace, the policy lapses.
Can I cash out my life insurance policy?
You can cash out a life insurance policy. How much money you get for it will depend on the amount of cash value held in it. If you have, say $10,000 of accumulated cash value, you would be entitled to withdraw up to all of that amount (less any surrender fees). At that point, however, your policy would be terminated.
Can you get money back from a lapsed life insurance policy?
Some insurance policies include a nonforfeiture clause, which means that if you stop paying premiums, you still receive some sort of benefit. You can think of this as a lapsed policy refund. If your coverage lapses, the insurance company will refund part of your premium payments and/or pay you the policy's cash value.
Can I cancel my policy and get a refund?
You can cancel a health insurance policy by informing your insurer. However, the percentage of refund you will receive will depend on which time in the policy cycle you initiated the cancellation. Also, a refund is usually applicable only if you have not raised any claims during the policy term.
How to withdraw LIC money?
Visit the nearest LIC branch and avail a surrender discharge form. Submit the filled form along with the required documents. After submitting the form and documents, the insurer will process the surrendering of the LIC policy. The surrender value will be provided to you when the request is approved by the insurer.
What is the life insurance where you get money back?
Return of premium life insurance is a type of term life insurance that allows you to collect your premium payments if you outlive your selected term. To make this possible, this insurance plan can be more expensive.
How much money will I get if I surrender my policy?
If surrendered in the second year, 30% of the total premiums paid will be returned. If surrendered in the third year, 35% of the total premiums paid will be given. If surrendered anytime from the fourth to the seventh year, 50% of the total premiums paid will be returned.
What is the cash value of a $10,000 life insurance policy?
Say, for example, that you purchase an insurance policy with a face value of $10,000. Once the policy matures, the cash value of the policy should equal $10,000.
What happens to my money if I stop paying life insurance?
This means that you can stop paying the premium and collect the available cash savings. You will no longer be covered by life insurance, but you will at least save some of the proceeds of the policy. You may, however, have to pay taxes on some of the cash value if the sum exceeds what you have paid in premiums.
How to know LIC surrender value?
Guaranteed Surrender Value = 30% X Total premiums paid. The first-year premiums and all the added premiums or premiums for accident benefit or the term rider are excluded from the same. The percentage to be paid may depend on the policy plan and the year in which an individual will surrender the policy.
Is it wise to surrender life insurance policy?
Surrender traditional products early or hold them if the term is almost over: For starters, surrendering within three years of a policy will give you nothing. After three years, you get 30% of the premium paid minus first-year premium plus partial bonus.
Can I cancel my LIC policy?
Guidelines of LIC for Cancelling a Policy
You can surrender a policy only after you have paid its premiums for at least three consecutive years. The premium amount that you have paid for the first year of your LIC policy is excluded at the time of calculating the surrender value.
What is the refund rate for LIC?
High Sum Assured Rebate (on Premium): Basic Sum Assured (B.S.A) Rebate (Rs.) 1, 00,000 to 1, 95,000 - Nil 2, 00,000 to 4, 95,000 - 2.00 %o B.S.A. 5, 00,000 and above - 3.00%o B.S.A.
What happens if I stop paying lic premium?
If your policy has lapsed owing to non-payment of premiums on time, the terms and conditions of the policy contract are null and void until you reinstate it. A lapsed coverage must be reinstated by paying the accumulated premiums with interest and providing the necessary health information.
What is the LIC money back policy?
This is a Money Back type Assurance plan that provide financial protection against death throughout the term of plan along with the periodic payments on survival at specified durations during the term.