What is LIC cooling period?

Asked by: Randall Kuphal  |  Last update: February 10, 2023
Score: 5/5 (47 votes)

The cooling-off period is 21 calendar days after the delivery of the policy or issue of a Cooling-off Notice (see below) to the policyholder or the policyholder's representative, whichever is the earlier.

Can I cancel LIC policy within 15 days?

Cancel a life insurance policy within 15 days from the date of receipt of the policy document. If you disagree to any of the terms or conditions in the policy. For Health policies the option of Free Look may be exercised provided that the term of the policy is at;east three years.

Can we cancel LIC policy after 1 month?

You can cancel the LIC policy after paying the premiums for a minimum of three years. If you (the policyholder) give up the policy within three years, there will not be any surrender value applicable.

What is the insurance policy cooling off period?

Insurance companies offer new buyers a Cooling-off Period (sometimes also known as a Free Look Period) of 15-30 days. Under such a cooling-off period, members who have not made a claim within 15-30 days of the commencement date of their policy are entitled to cancel their policy and receive a full refund.

Can we cancel LIC policy after 3 months?

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.

LIC policy, want to surrender before 2 n 3 years l LIC cooling off feature close policy with refund

23 related questions found

Can I cancel my life insurance policy after 1 year?

You can cancel your life insurance policy at any time. There are penalties for canceling permanent life insurance during the first several years of the policy. If you cancel a whole life policy you may receive a cash surrender payout, which could be taxed.

Can I close my LIC policy before 3 years?

A policyholder can surrender his/her policy only after the completion of 3 years, i.e. the policy has to have been in force for a period of 3 years, at least. The surrender value provided by LIC is essentially 30% of the premiums that have been paid so far.

What does a 14 day cooling-off period mean?

A cooling-off period lets you to cancel orders and contracts if you change your mind, usually within 14 days.

What is free look period in LIC?

Free Look Period is the period of 30 days from the date of receipt of the Policy Document by the Policyholder to review the terms and conditions of this policy and where the Policyholder disagrees to any of those terms and conditions, he/ she has the option to return this policy as detailed in Condition 7 of Part D of ...

How long will free look in period or cooling-off period lasts?

​Stipulated period

The law allows the policyholder 15 days as free-look period from the date of receipt of the policy document. Policyholder is allowed to cancel the policy during this period and get a refund.

Will I get my money back if I cancel my LIC policy?

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.

Can I withdraw LIC before maturity?

It is the option to exit from life insurance product before maturity wherein policyholder will get the amount which is called as Surrender Value. A regular premium policy will be eligible for surrendering after the policyholder has paid the premiums continuously for 3 years.

Is it possible to cancel LIC policy?

Guidelines of LIC for Cancelling a Policy

You can surrender a policy only after you have paid its premiums for at least three consecutive years. The premium amount that you have paid for the first year of your LIC policy is excluded at the time of calculating the surrender value.

Can I cancel my insurance policy within 14 days?

Yes, if you choose to cancel your car insurance policy within the 14-day cooling-off period, it is a legal requirement that you're granted a refund. But you will be charged for the time when the policy was active and you may also have to pay an administration fee, so check the terms and conditions of the policy.

How do you surrender in a free look period?

After the free-look period, the policy can be cancelled via surrender. In most plans, if you cancel the policy in the first year itself, the premium is written off towards surrender charges. You should look at the policy schedule for the exact charges based on the number of years of paid-up premium.

What is the minimum period of life insurance?

A grace period of one month but not less than 30 days is allowed where the mode of payment is yearly, half-yearly or quarterly and 15 days for monthly payments. If death occurs within this period, the life assured is covered for full sum assured.

Can I cancel a contract after cooling-off period?

In Law, you do not have an automatic right to cancel an agreement after the end of a cooling off period (if a cooling off period existed). Due to this, the seller is technically entitled to take you to court to force you to complete the contract. The main defences to a Court action are: The contract is invalid in law.

Why is a cooling-off period important?

The cooling off period is your last chance to withdraw from buying a property – so it's important to know how it works. The cooling off period is the very last stage that you, as a property buyer, can withdraw from the sale without major legal or financial consequences.

How do you calculate cooling-off period?

New South Wales
  1. Cooling off period expiry date: 5pm on the 5th business day after the contract date (the counting of days does not include the contract date).
  2. Cooling off termination fee: 0.25% of the purchase price.

How much money will I get if I surrender my LIC policy after 5 years?

Moreover, if you have paid your premiums for more than four years, but less than five years, then you will receive 90% of the total maturity sum assured as a special surrender value. A 100% special surrender value is given out if the policyholder has regularly paid the premiums for five years.

What is the surrender value of LIC?

Surrender value is the sum/ amount payable to the insurer when deciding to stop the policy and embody the same from LIC. The value is payable only after three full years of premiums are paid to LIC. The policyholder can opt to surrender his policy anytime he wants to.

How long does it take to surrender 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.

How can I check my LIC policy surrender?

How To Check LIC Policy Surrender Status Online?
  1. Visit the official website of LIC.
  2. Register as a new user and if you are already registered then click 'login here'
  3. Login to the LIC portal and select 'Enrol Policies' displayed on the left side of the page.
  4. Click on 'Click to Enrol New Policies' and hit on 'Proceed'

What if I fail to pay LIC premium?

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. Always keep your policy in force to ensure that your family gets their financial protection assured by your policy.

Can I close my LIC policy before maturity online?

When you want to discontinue your policy before its maturity, then it is known as surrendering the policy. The value you will receive while closing LIC policy online is called the surrender value of LIC policy. Your surrender value will be calculated if you paid premiums for 3 years continuously.