What happens if I stop paying LIC premium?

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.

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.

Is it good to surrender LIC policy?

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. Surrender of policy is not recommended since the surrender value would always be proportionately low.

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.

What will be the surrender value of LIC policy after 5 years?

A 100% special surrender value is given out if the policyholder has regularly paid the premiums for five years.

How can I cancel LIC policy in one year?

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 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.

What happens if I stop paying LIC premium before 3 years?

However, there are certain rules surrounding this concept. A policyholder will only be able to surrender his/her policy after having paid the premiums diligently for 3 years. Upon surrendering the policy, LIC provides a certain portion of money to the policyholder. This amount of money is known as surrender value.

What is surrender benefit?

Definition: It is the amount the policyholder will get from the life insurance company if he decides to exit the policy before maturity. ... Once you decide to exit the insurance policy, all the benefits associated with it, including the protection cover, will cease to exist.

What happens if you don't pay your insurance premium on time?

If you miss a monthly premium payment

Your health insurance company could end your coverage if you fall behind on your monthly premiums. But before your insurance company can end your coverage, you have a short period of time to pay called a "grace period."

How do I get my money back from lapsed policy?

If your policy has lapsed due to non-payment of premiums within the due date, the terms and conditions of the policy contract are rendered void, till you revive your policy. A lapsed policy has to be revived by payment of the accumulated premiums with interest as well as giving the health requirements as required.

Why is surrender value less than premium?

A policy acquires surrender value only when premiums for full three years have been paid to the insurance company. ... By surrendering a policy, the customer loses out on all the benefits of the scheme and receives a much lower amount than the premiums he has already paid.

Can I get my insurance premium back?

Return of Premium Benefit

Term insurance plans do not offer any maturity benefits. However, if the policyholder outlives the policy term, they can get all the premiums back with a term insurance plan with return of premium.

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.

When can you stop paying premiums on whole life insurance?

Unlike term insurance, whole life policies don't expire. The policy will stay in effect until you pass or until it is cancelled. Over time, the premiums you pay into the policy start to generate cash value, which can be used under certain conditions.

How can I withdraw money from LIC?

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.

How can I know my LIC policy no?

Contact Home Branch

While visiting the LIC branch, make sure to bring your PAN card and other ID cards. LIC officials validate the details of the policyholder. Once the verification has been completed, the LIC staff provides you the policy number.

How can I renew my LIC lapsed?