What happens if I stop paying LIC premium after 3 years Quora?
Asked by: Brooke Flatley III | Last update: January 12, 2026Score: 4.6/5 (57 votes)
What happens if I stop paying LIC premium after 3 years?
If the policy has run for atleast 3 full years and subsequent premiums have not been paid the policy shall not be void but the sum assured will be reduced to a sum which will bear the same ratio as to the number of premiums paid bear to the total number of premiums payable.
Is it good to surrender LIC policy after 3 years?
There will be a loss. Life Insurance policies do acquire a surrender value after three years. However this value will typically be a small fraction of the premiums you have paid.
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.
Can I revive my LIC policy after 3 years?
Sometimes the policyholder is asked for some medical reports under Form 680 for the revival of the LIC policy. Conditions under the special revival of LIC policy are: It can be used only once in the entire tenure of the policy. Insured can avail of the special revival offer only within 3 years of the lapsed policy.
LIC पॉलिसी की Surrender Value कैसे जानें? आसान तरीका ! LIC Policy Surrender Value Calculator
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 many years before a lapsed life insurance policy can be reinstated?
The process and conditions for reinstatement can vary across insurance companies, but here are the general steps and requirements for reinstatement: Act Quickly: Most insurers have a reinstatement period, often ranging from 2 to 5 years from the date of the lapse, during which you can reinstate your policy.
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.
Can I cancel my life insurance policy and get my money-back?
Unless you're canceling a policy during a free-look period, your premium won't be refunded if you cancel your life insurance policy. There are a few instances where you may see some money returned. For example, you may receive your accumulated cash value if you cancel a permanent policy, minus any taxes and fees.
How can I get money from lapsed LIC policy?
- Submit a written request to LIC, including the policy document, proof of identity and address, and a medical report if required.
- LIC will calculate the revival amount necessary.
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.
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.
Can I surrender Max life insurance policy after 3 years?
Any policyholder may opt to surrender the policy before the insurance term expires. Benefits from life insurance are automatically terminated upon surrender. The insurance company will release the surrender value if the request for submission is approved.
Is it good to surrender LIC policy after 5 years?
Upon the LIC policy surrender, the life coverage and other benefits stop immediately, and you cannot claim them in the future. Surrendering your LIC policy is not recommended, as the surrender value you receive is substantially lower than the original policy benefits promised.
What happens if I stop paying my life insurance premium?
If there isn't enough cash value in the policy to pay the premium, or once the cash value has been used up due to continued non-payment, your policy will slip into the grace period. Your policy will officially lapse once the grace period ends, meaning your coverage will end and no death benefit will be paid.
Does insurance go down after 3 years?
Car insurance rates drop three to five years after a violation hits your claims record. Switching insurers is usually the fastest way to make your insurance rates go down.
How much will I receive if I surrender my life insurance policy?
Fortunately, it's easy to calculate your cash surrender value. First, add up the total payments you've made toward your life insurance policy. Then, subtract the surrender fees your insurance company will charge. You'll be left with the actual payout you may receive if you terminate or surrender your life insurance.
What is the two year rule for life insurance?
If you pass away in the first two years of your life insurance coverage, the insurance company has a right to contest or question your claim.
Do I get my money back if I outlive my life insurance?
Do you get your money back at the end of a term life insurance policy? You can't get your premium dollars back from a standard term life insurance policy once it expires. However, if you buy a return of premium (ROP) rider, then you could get some or all of your premium back if you outlive your policy.
How much money will I get if I surrender my policy after 3 years?
Guaranteed Surrender Value
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.
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 to cancel LIC policy after 3 years?
Step 1: Go to the nearest branch of LIC or visit the insurer's official website. Step 2: Download or take a printout of the 'Surrender Discharge Voucher' (LIC Form No. 5074) at the LIC office. Step 3: Complete the form and submit it along with the necessary supporting documentation.
Can you get your money back if your life insurance lapses?
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.
What is the difference between a life insurance lapse and a surrender?
A life insurance lapse occurs when you unintentionally fail to pay premiums, leading to an automatic termination of the policy. On the other hand, a surrender happens when you intentionally end your policy before its term, usually in exchange for the cash value it has accrued.
Can life insurance be denied after 2 years?
Generally, if a life insurer tries to delay or deny payment or launch an investigation when the insured dies after the two year contestability period, this would be violating the law.