What are the documents required to surrender LIC policy?
Asked by: Jackeline O'Kon | Last update: December 26, 2025Score: 4.2/5 (52 votes)
- Original policy bond documents.
- Request for surrender value payment.
- LIC Surrender form- form 5074.
- LIC NEFT form.
- Bank account details.
- Original ID proof like an Aadhar card, PAN card or driving license.
- A cancelled cheque.
- Hand-written letter to LIC stating the reason for discontinuing.
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.
What are the rules for surrender of insurance policy?
To surrender a policy, you must consistently pay premiums for a minimum period of time. In most life insurance plans, surrender value only exists after consecutively paying premiums for a specified period, usually three years.
Can I surrender my LIC policy after maturity?
Terms of LIC Surrender Value:
To surrender an LIC policy after 10 years, you should have paid premiums for a minimum of 3 years. Only then can you claim any surrender benefit. The more premiums you have paid, the more money you will return. Bonuses also acquire a surrender value.
How to withdraw a matured LIC policy online?
- Step 1: Visit the official website of LIC.
- Step 2: Click on the “Customer Services” tab and select the “Claim Forms” option.
- Step 3: Choose the Maturity claim form based on the policy type.
- Step 4: Fill in the form with the required details and attach the necessary documents.
How to get rid of LIC Policy? | Surrender LIC Policy | Surrender Value explained
What documents are required for LIC maturity claim?
For the LIC policy maturity claim, you need the original policy document, identity proof, proof of your address and proof of your date of birth.
Is it possible to surrender a LIC policy online?
To surrender the LIC policy online before maturity you need to visit the LIC's official website and log into your account using your credentials or create a new one. Select the policy that you want to surrender and submit the surrender request along with the required documents.
What are the disadvantages of surrendering LIC policy?
Surrendering and buying a new policy later can be more expensive in the long run. Lower Surrender Value: The amount you receive upon surrendering your LIC policy is typically less than the total premiums you've paid. This means you may lose money.
How to write an application for LIC policy surrender?
Dear Sir/Madam, Respectfully, I, [Your Name], hold insurance policy number [Policy Number] from your insurance company [Company Name], taken on [Date of Policy Taken]. The same is due for maturity on [Maturity Date]. I wish to surrender the policy due to [Reason for Surrender].
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.
How do I request a policy surrender?
The process is generally quite simple. After contacting your insurer with your intent to surrender the policy, you should be sent a form asking you to put your decision in writing. After mailing this back to the company, they should release your funds in a short matter of time.
How do I write a letter to surrender my insurance policy?
Dear Sir/Madam, I am writing to ask them to give up my insurance policy because I have found better investment options that fit my financial goals better. I Given article text here Dear Sir/Madam, I am writing to request the surrender of my life insurance policy as I no longer require it.
What are the surrender charges?
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.
What is the best time to surrender a LIC policy?
If the policyholder pays premiums for more than 5 years, they receive 100% of the sum assured (maturity amount). As stated above, the policyholder can surrender the LIC policy after 3 years, provided the policy has been in force for at least 3 years. The LIC surrender value is 30% of the paid premium amount.
Which is better, paid-up or surrender?
However, surrendering a policy early results in reduced payouts, as bonuses and other benefits may not fully accrue. Opt for paid-up value if you want to retain insurance coverage without additional premium payments. This choice is beneficial when long-term protection is a priority, even if the payout is reduced.
What is the new surrender policy?
What are the new surrender rules for life insurance policies? The new rules state that policyholders can surrender their policy after paying premiums for two years, instead of the earlier requirement of three years.
How to calculate LIC surrender value?
After payment of premiums for at least three years, the Surrender Value allowed under the policy is equal to 30% of the total premiums paid excluding premiums for the 1st year and all extra premiums.
What is a policy surrender form?
A surrender form for a life insurance policy simply cancels the policy. When the policy is canceled, you will receive its surrender value - the cash value (the balance in your policy's cash value account) minus the surrender fees.
How to download LIC surrender form?
You can download the surrender form from the official website of the company. Fill this form and submit it to the local branch of LIC along with the surrender or cancellation form, you must submit the following documents: Original documents of the policy. A canceled cheque.
Can I cancel LIC policy and get money back?
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.
Do we get bonus if we surrender a LIC policy?
Once you have surrendered your LIC policy, the insurer will provide you with a portion of money known as 'accumulated bonus' along with the premiums that you have paid for that period of time.
What is the difference between sum assured and surrender value?
When one stops paying premiums after a certain period, the policy continues but with a lower sum assured. This sum assured is called the paid up value. The more the number of premiums paid, the more will be the surrender value. The surrender value factor is a percentage of the paid-up value plus the bonus.
How to write a letter to surrender LIC policy?
I would like to surrender my policy to meet the needs of my children. Kindly let me know the surrender value of my policy and all other relevant details as soon as possible. Your kind and early action in the matter will highly oblige me.
How to get LIC maturity amount?
Settlement process: After getting the policy discharge and all the paperwork, LIC checks all the documents. Once the insurance company verifies all the submitted documents, it processes the claim. The maturity amount is sent directly to the policyholder's bank account once the policy surpasses the maturity date.
What is the surrender value of life insurance?
Cash surrender value is the actual amount of money you will receive if you choose to terminate a permanent life insurance policy before its maturity date, or before you die. That value differs from your life insurance policy's cash value component, which is the total sum compiled in your policy's cash account.