What happens if I withdraw my LIC policy?
Asked by: Ted Fadel | Last update: December 23, 2023Score: 4.5/5 (39 votes)
The amount that you receive at the time is the LIC policy surrender value. The life cover stops immediately and you won't be able to revive it in the future. Surrender of policy is not recommended since the LIC surrender value will always be substantially lower than the original benefits promised.
Will I get my money back if I cancel my LIC policy?
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?
A policyholder can surrender his/her policy only after the completion of three years, i.e. the policy has to have been in force for a period of three years, at least. The surrender value provided by LIC is essentially 30% of the premiums that have been paid so far.
What if I want to withdraw my LIC policy?
Visit the nearest LIC branch and avail a surrender discharge voucher. Form 5074 is the surrender discharge voucher. Fill the form 5074 and submit it with the relevant documents. Or else, courier the filled form along with relevant documents to the LIC's head office.
Is it good to break LIC policy?
If you surrender or cancel your LIC policy before a definite period, you may get a lesser surrender value than the premiums that you have paid against it. Therefore, retaining your LIC policy without allowing it to lapse is the best way not to lose your money as well as your life insurance protection.
How to get rid of LIC Policy? | Surrender LIC Policy | Surrender Value explained
Can I withdraw money from LIC before maturity?
Canceling your policy before the maturity date is called surrendering your policy. You will get the surrender value upon closing your policy. You can use a LIC surrender value calculator to find this amount. It will be calculated if the premium is paid for three years in succession.
How much money will I get if I surrender my LIC policy before 1 year?
LIC's Rules About Policy Surrender
You will not get any of the premium amounts paid in the first year in your surrender value. In general, the surrender value is returned to the policyholder at 30% of the premium amount.
How much will I get if I surrender my LIC policy after 5 years?
Special Surrender Value
If the policyholder is paying premiums for more than 5 years, then he/she receives 100% of the sum assured (maturity amount).
What are the disadvantages of surrendering LIC policy?
Disadvantages of Surrendering LIC policy:
1. Surrendering your policy means that you are breaking your contract with LIC and also your risk cover. 2. You will get only 30% of the premiums paid, excluding premium for the first year and any bonus.
How long does it take to withdraw money from LIC policy?
Once all the necessary documents are submitted to the company, they will process the request and the surrender value will be transferred to the bank account within a maximum of 10 days. Surrendering an LIC policy must be done only after thinking about the potential consequences arising out of it.
What happens if I stop paying LIC premium?
What happens when I fail to pay my life insurance premiums on time? Generally, you will be provided a grace period which is typically up to 30 days after your due date. If you fail to pay your premium in the grace period as well, then your insurance policy will get terminated.
What happens if I surrender my LIC policy after 5 years?
Demerits of Withdrawing LIC policy After 5 Years
In that case, he/she will have to pay a higher premium. This is because the policyholder's age has increased, and consequently, the risk. Based on what is stated in terms of the LIC agreement, the accumulated bonus can be redeemed.
Can I surrender my LIC policy anywhere?
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 can I convert my LIC policy to paid up?
How to Convert a LIC Policy to a Paid-Up Policy? Suppose your policy tenure is more than 10 years and you have paid premiums for more than 3 years. In that case, your policy becomes paid-up automatically if you stop paying the premiums.
How much will I get if I surrender my LIC policy after 3 years?
Under the guaranteed surrender value, the policyholder can surrender their policy only after the completion of 3 years. This means that the premium has to be paid for a minimum period of 3 years. If you surrender after 3 years, the surrender value will be around 30% of the premiums paid till date.
What is the surrender value of LIC policy after 10 years?
If you have been paying premiums for 10 years or more, LIC declares a guaranteed surrender value factor. In this case, guaranteed surrender value will be equal to : (total premium paid multiplied by the guaranteed surrender value factor) plus (bonus multiplied by surrender value factor for bonus).
What is the amount of 16 years maturity in LIC money back policy?
For the policy tenure of 16 years, 15 % of the basic sum assured is paid at the end of the 4th, 8th, and 12th policy year. For the policy tenure of 20 years, 15 % of the basic sum assured at the end of the 4th, 8th, 12th, and 16th policy year.
What happens if I stop paying LIC premium after 3 months?
The policy will Lapse if you Stop paying premium amounts
The type of insurance product is an important factor to consider: Term Insurance: In the case of a term insurance plan, if you don't pay the premium amount on time to the insurer within the due date, then the plan will lapse.
What is lapsed without surrender value?
This means that in case the policyholder failed to pay regular premium amount to LIC and the policy lapsed before the term of 3 years, it would be considered lapsed without surrender value.
How much money will I get from LIC?
Q: How much maturity benefit can one expect on the expiration of the LIC policy? Ans: If the insured or policyholder meets the terms of the policy at the expiration of the policy, they are entitled to receive 40% of the initial Sum assured in addition to various related bonuses and also the additional bonus amount.
Can I get LIC maturity amount online?
No, you cannot claim the LIC maturity amount online. You can go to the LIC website or LIC's unclaimed policy page online to get information about what amount is due to you. However, you have to visit the nearest office to you, of the insurer, or call the insurer to begin the process of claiming money.
How can I get LIC maturity amount?
The policyholder is required to send the discharge form along with the required documents to process the LIC maturity claim. These documents are required to be submitted before 7 days of the maturity date to the insurance company to ease the process of LIC maturity claim or settlement process.
Can we withdraw money from LIC Jeevan Anand?
You can surrender your Jeevan Anand policies at any time. However, if you surrender your policy before paying three full year premiums, you will not get any money from LIC. If you have paid more three full year premiums in your other policy, LIC will give you the Surrender Value.
What is the meaning of maturity sum assured in LIC?
The Maturity Sum Assured depends on the age at entry of the life to be assured and is payable on survival to the end of the policy term. It also offers the flexibility of term and a lot of liquidity.
Can a lapsed life insurance policy be surrendered?
If you have a whole life insurance policy, that has lapsed, there may be options for getting some money back from the policy. For example, if you have accumulated cash value in the policy, you may be able to receive a surrender value for that cash value.