Can we change LIC policy term?

Asked by: Linda Kozey MD  |  Last update: February 11, 2022
Score: 4.3/5 (56 votes)

After the policy is issued, the policyholder in a number of cases finds the terms not suitable to him and desires to change them. LIC allows certain types of alterations during the lifetime of the policy. However, no alteration is permitted within one year of the commencement of the policy with some exceptions.

Can I change the LIC policy term?

Sometimes policyholders may wish to change the terms and conditions even after a policy is issued. In these situations, they can approach the company and request for a change in their policy terms. While alterations are allowed during a policy's lifetime, they are limited to the following types: Alteration in name.

How do I shorten my LIC policy?

How To Surrender LIC Policy
  1. Original policy bond documents.
  2. Request for surrender value payment.
  3. LIC Surrender form- form 5074.
  4. LIC NEFT form.
  5. Bank account details.
  6. Original ID proof like Aadhar card, pan card or driving license.
  7. A cancelled cheque.
  8. Hand-written letter to LIC stating the reason to discontinue.

Can I change premium paying term?

Changes can be made to the sum assured, premium amount and policy's premium-paying period. Such changes can be done in several unit-linked insurance plans (Ulips). A term plan does not offer such flexibility.

Can we reduce LIC policy years?

If you wish to discontinue your life insurance policy for any reason, you can do so, but at a cost. ... Since life insurance policy is a long-term contract, if you discontinue it earlier, then the original maturity sum gets reduced by the insurance company, thus bringing down the in-hand return even more.

Can I change the policy term after buying the term insurance plan? | FAQ #05

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Do I get money back if I cancel my life insurance?

Do I get my money back if I cancel my life insurance policy? You don't get money back after canceling term life insurance unless you cancel during the free look period or mid-billing cycle. You may receive some money from your cash value if you cancel a whole life policy, but any gains are taxed as income.

What happens if I stop paying LIC premium after 10 years?

If the PPT is less than 10 years (even if the actual policy term is 25, 30 years), the policy will acquire a surrender value if the premium has been paid for at least two years. For single premium policies, the surrender value gets acquired after the first year itself.

Can I surrender LIC policy after 1 year?

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.

What happens if I stop paying LIC premium after 4 years?

Life Insurance

Term: If you stop paying premiums, your coverage lapses. Permanent: If you have this type of policy, you will have the following choices: Cash out the policy. This means that you can stop paying the premium and collect the available cash savings.

Can I surrender LIC policy online?

First keep in mind that as of now Surrendering LIC policy is not possible ONLINE. Also, you have to surrender the LIC policy at your servicing LIC branch ONLY. ... The reason for this is, your all policy documents like proposal forms, loan details and all other details will be available at servicing branch only.

Can I surrender LIC policy in any branch?

The LIC policy can only be surrendered at the branch, where it's currently being served (i.e. Servicing Branch). So you need to change the policy servicing branch first, before surrendering it. This will add time for the surrender process.

How can I change my LIC policy online?

LIC allows policyholders to make different kinds of alterations in their policy document. However, this process cannot be done online. The policyholder must provide a written application of the required alteration to the company, and it must be done in person by visiting the branch office.

Can I cancel LIC policy within 15 days?

Cancellation allowed only for new policies

"The policy can be cancelled anytime within 15 days and 30 days in case of electronic policies and policies sourced through distance mode," says Indraneel Chatterjee, Co-Founder, RenewBuy, an insurance brokerage firm.

Can I withdraw LIC after 5 years?

If 5 years have passed after you purchased your LIC policy, you are eligible for policy withdrawal. However, keep in mind that currently, the facility of surrendering LIC policy is not available online. So, it would be best if you surrendered the LIC policy through the service branch of LIC.

What happens if you don't pay LIC premium after 5 years?

In case of ULIP (unit-linked insurance plan), if you skip paying the premium in the first five years or during the lock-in period, the policy is considered lapsed. Your benefits move to a discontinuance fund and is payable only after the lock-in period.

Can I revive my LIC policy after 5 years?

It can be revived any time within 5 years from the date of first unpaid premium. To revive a lapsed policy, you need to pay the accumulated unpaid premiums along with the interest. ... "If the policy was issued prior to the guidelines, the same will be renewed at the earlier terms and conditions.

How can I change my LIC premium?

To change the premium payment mode of your policy, the simple thing to do is to write a letter to the LIC branch manager from where you have got your LIC policy. This is how it usually works but currently, it is not possible for you to change the premium payment mode online.

How much LIC will I get after maturity?

Maturity Benefit: If the policyholder survives till the period of maturity of the policy, he/she will receive 40% of the basic sum assured coupled with reversionary bonuses and the additional bonus amount.

How can I check my LIC policy surrender value?

How to Check the Surrender Value of your LIC Policy? You can calculate the surrender value of your policy using this simple formula [Basic sum assured (Number of premiums paid/Total number of premiums payable) + Total bonus received] x Surrender Value Factor.

How do I cancel my Jeevan Anand policy?

The policy can be surrendered by the policyholder at any time provided two full years' premiums have been paid. On surrender of the policy, the Corporation shall pay the Surrender Value equal to higher of Guaranteed Surrender Value and Special Surrender Value.

Whats better term or whole life?

Term coverage only protects you for a limited number of years, while whole life provides lifelong protection—if you can keep up with the premium payments. Whole life premiums can cost five to 15 times more than term policies with the same death benefit, so they may not be an option for budget-conscious consumers.

What is better term or whole life?

Term life coverage is often the most affordable life insurance because it's temporary and has no cash value. Whole life insurance premiums are much higher because the coverage lasts your lifetime, and the policy grows cash value.

Is LIC policy worth buying?

Is LIC a Good Investment? Insurance is best taken care of by buying a term insurance which is a pure risk cover. Thumb rules suggest that you require an insurance cover which is at least 10 times your annual income and term insurance is the only way to get such a cover. ... Hence LIC policies are a bad investment.

How can I cancel LIC policy in free look?

Call up the insurer's customer care to communicate your decision to cancel the policy. You should visit the insurer's office to submit your policy cancellation application. Many insurers put up cancellation forms on their websites, which can be downloaded.