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How can I cancel my LIC policy and get money back?
How To Surrender LIC Policy
- Original policy bond documents.
- Request for surrender value payment.
- LIC Surrender form- form 5074.
- LIC NEFT form.
- Bank account details.
- Original ID proof like Aadhar card, pan card or driving license.
- A cancelled cheque.
- Hand-written letter to LIC stating the reason to discontinue.
What happens if I stop paying LIC premium after 8 years?
If you wish to discontinue your life insurance policy for any reason, you can do so, but at a cost. In case of a term life insurance policy, if you stop paying the periodic premium, the policy automatically lapses, i.e., the risk cover ceases but there is no other additional downside or cost.
Can I surrender my paid up LIC policy?
Surrender – you can surrender the policy if at least 3 years’ premium has been paid, i.e. the policy has acquired a paid-up value. On surrendering, the Surrender Value is paid immediately to the policyholder and the plan terminates.
What is the surrender value of LIC policy after 7 years?
The policy can be surrendered after it has been in force for at least 3 full years. The Guaranteed Surrender value will be equal to 30\% of the total amount of premiums paid excluding the premiums for the first year and all the extra premiums and premiums for accident benefit / term rider.
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 happens if LIC policy is not paid for 3 years?
If you have paid premium for 3 years only and not have paid premium for next 2 years after that, the policy have been paid up policy or it has been closed. Now, if you apply for request to the LIC to get premiums back which you have been paid, then you are eligible to get 50-70\% of premiums excluding service taxes.
LIC premium can be paid in advance one month prior to the due date. LIC policyholder those who are paying the policy premium in quarterly, half-yearly and yearly modes get 2 months (59 days) time to clear the dues. For example, Rs. 6500/- is the premium and the due date is 25–03–2020, this premium can be paid from 25–02–2020 to 23–04–2020.
What will happen if I Surrender my LIC policy?
By surrendering LIC policy, you may not be in profit as they pay you some part of the total accumulated bonus and the premium you paid. # You will loose the Life Insurance Protection available from the policy. As surrender of LIC policy is considered as the closure of the contract between you and insurance company.
Can I revive my unpaid life insurance policy after 2 years?
However the most important things to understand is you can always revive your policy within 2 years of missing out on premium payment. For reviving the policy you have to pay the unpaid premiums along with interest for the lost period. Once you pay the premiums with interest then all your benefits will be restored.