How can I cancel LIC policy online?

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.

What if I stop paying LIC premium?

In case of a term life insurance policy, if you stop paying the periodic premium, the policy automatically lapses, i.e., the risk cover ceases but there is no other additional downside or cost.

What is LIC surrender value?

This is the value which is the amount payable to you should you decide to discontinue the policy and encash the same from LIC. Surrender value is payable only after three full years premiums are paid to LIC. More over if it is a participating policy the Bonus get attached to it as per prevalent rules.

How much money will I get if I surrender my LIC policy after 4 years?

Types of LIC Surrender Value After 4 years

If in case, the insurance holder has paid premiums for more than 4 years and less than 5 years, then 90% of the complete maturity sum is provided. If the policyholder is paying premiums for more than 5 years, then he/she receives 100% of the sum assured (maturity amount).

Can we withdraw LIC policy 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.

How much money will I get if I surrender my LIC policy after 3 years?

A policyholder can surrender his/her policy only after the completion of 3 years, i.e. the policy has to have been in force for a period of 3 years, at least. The surrender value provided by LIC is essentially 30% of the premiums that have been paid so far.

What are the documents required to surrender LIC policy?

Physical copy of LIC Policy Surrender Form No. 5074. Bank account information of the policyholder will be required. Proof of identification such as voter's ID, PAN, or driving license will be required when surrendering LIC policy.

Can I get my money back from LIC?

The LIC new money back policy can be surrendered only after it accrues cash value after payment of 3 years of premiums. If policyholders stop paying the premium, the policy ceases to exist. Nevertheless, if premiums have been paid for three years, a paid up value is accrued for a reduced sum assured.

How can I check my LIC maturity amount?

Steps to be followed by new users: Step 1:The insured needs to visit the official website of LIC. Step 2:On the home page, the user can select the option of "New User." Step 3:In the next step, he can fill up his personal details such as name, date of birth, policy number, mobile number, email address, etc.

What is a surrender charge?

A "surrender charge" is a type of sales charge you must pay if you sell or withdraw money from a variable annuity during the "surrender period" – a set period of time that typically lasts six to eight years after you purchase the annuity. Surrender charges will reduce the value and the return of your investment.

Can I claim LIC maturity amount online?

Process of various services and online forms:

The requirement for the claim are as given below: Claim Form 'A' in Form No.3783. If policy has run for 3 years or more from date or risk, claim form no.3783A may be used.

Can I cancel LIC policy within 15 days?

Cancel a life insurance policy within 15 days from the date of receipt of the policy document. If you disagree to any of the terms or conditions in the policy. For Health policies the option of Free Look may be exercised provided that the term of the policy is at;east three years.

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

What happens when you cancel a life insurance policy? Generally, there are no penalties to be paid. If you have a whole life policy, you may receive a check for the cash value of the policy, but a term policy will not provide any significant payout.

Where can I surrender my LIC policy?

The policyholder should visit the nearest branch of LIC and avail a surrender discharge voucher. The Surrender Discharge Voucher is called Form 5074. The form should be filled and submitted with the relevant documents. Once the form and the documents are submitted, the company would process the surrender of the policy.

How do I write a letter to cancel my insurance?

Cancellation date : Provide a specific date for the changes to take effect. Reasons : Provide a reason for your cancellation. Stop payment or refund request : Request the insurer stop automatic payments immediately if you pay monthly. If you paid in advance, request a refund for the remaining balance.

What happens if you stop paying a whole life insurance policy?

If you cash out the policy, the insurance company will disburse the cash savings to you. Use the funds how you see fit, but be mindful that you'll no longer have life insurance coverage. You could also be responsible for paying income taxes if the amount you receive is more than what you paid in premiums.

What happens if I cancel my whole life policy?

If you cancel a whole life insurance policy when you haven't had it for very long, you face surrender fees and may not get any of your policy's cash value. If you've been covered for longer, you have options that may allow you to take the cash value, keep the death benefit, or both.

How can I surrender my LIC policy in free look period?

Can we take LIC before maturity?

It is the option to exit from life insurance product before maturity wherein policyholder will get the amount which is called as Surrender Value. A regular premium policy will be eligible for surrendering after the policyholder has paid the premiums continuously for 3 years.

What is surrender free amount?

After the surrender period has passed, the investor is free to withdraw the funds without being subject to a fee. Typically, surrender fees​​​ are a percentage of the withdrawal amount. In many cases, the surrender fee declines over time.

How the surrender value is calculated?

Special surrender value

Usually, this special surrender value is determined with the formula - (Accrued bonuses + Paid-up value) multiplied by the surrender value factor. The paid-up value is calculated as the Basic sum assured multiplied by the number of premiums payable or the number of premiums paid.