LIC Policy Surrender: How to Determine the LIC Policy's Surrender Value

 LIC Policy Surrender: How to Determine the LIC Policy's Surrender Value

If you too are considering giving up the coverage, make sure you are aware of all the guidelines. Surrendering the policy refers to stopping the LIC policy in the middle. The LIC insurance may only be cancelled after a minimum of three years.

Delhi, New. The surrender rate of LIC's life insurance policy has increased after Corona. A media article claims that compared to other years, the policy's pace of surrender has more than quadrupled in 2020–21. Know the guidelines beforehand if you're considering giving up your coverage because of the financial crisis.

Surrendering the policy refers to stopping the LIC policy in the middle. YouLIC-The insurance must be cancelled after a minimum of three years. You won't get any money if you do it before three years.

Value surrendered

According to LIC regulations, you get surrender value when you surrender the insurance. This indicates that the money you get back equivalent to its worth in the event that you choose to cancel the policy or withdraw the funds from LIC is known as surrender value. Only you would be eligible to get the surrender value if you have paid the LIC premium for the whole three years.

How much cash is returned

Huge losses occur when the insurance is surrendered. You are qualified for surrender value if you have paid premiums for three years in a row. Only 30% of the premium, less the first year's premium, is given to you after that. This implies that the premium you paid for the first year also disappears. This will make thirty percent accessible for the next two years. Additionally, any extra premiums paid for riders, taxes, and any bonus earned from LIC are not included in this.

To surrender the insurance, you must submit a LIC surrender form and a NEFT form. You must affix the original policy documentation and a copy of your PAN card to these forms. You must provide a handwritten letter explaining your decision to cancel the coverage.

Which document would you like?

1. Original Document for Policy Bonds

2. Surrender Form No. 5074 for LIC Policy. You may download the form.

3. Details of Bank Accounts

4. The LIC NEFT form (if you do not use the surrender form).

5. Aadhar, a driver's license, or a PAN card are examples of original ID proof.