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

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 happens if I stop paying LIC premium after 1 year?

For single premium policies, the surrender value gets acquired after the first year itself. In case you haven't paid even 2 or 3 years' premium (as per the case above) and want to discontinue, the insurer will not pay you back anything and will not convert it into a paid-up policy either. The money is all but lost.

How many days will it take to get LIC surrender?

Understand that surrendering your policy after the free-look period—usually 15 days after you've received the policy documents—could mean bearing some costs. A policyholder will only be able to surrender his/her policy after having paid the premiums diligently for 3 years.

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.

Can I cancel my 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 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.

How can I cancel LIC policy in one year?

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.

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.

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.

How can I renew my LIC lapsed?

What is surrender value factor?

The surrender value factor is the percentage of total premiums paid. Surrender value factor increases with the number of years of the policy. Surrender value factor will get close to 100% of premiums paid when the policy nears maturity.

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 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."

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.

What are the documents required for surrendering 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.

How do you avoid surrender charges?

What is minimum guaranteed surrender value?

Most insurers offer two options: a minimum guaranteed surrender value, which is a regulatory requirement, and a non-guaranteed surrender value. The guaranteed surrender value is a fixed percentage of your premiums—typically, it is around 30-35% of all the premiums paid minus the first year's premium.

What is the difference between cash value and surrender value?

Cash Value vs.

The difference between the cash and the surrender value is that if you surrender your policy (for example, if you choose to cancel and cash out the life insurance policy), you will receive the cash value that has accumulated less any applicable surrender charges.

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.

Can I cancel my insurance at any time?

Fortunately, auto insurance companies generally give you the right to cancel your policy at any time as long as you provide proper notice. While most auto insurers will likely refund your unused premium, some may charge a fee if you choose to cancel in the middle of your policy term.