A Simple Guide to Surrendering LIC Policy Online
Want to know the process of “surrendering lic policy online”? Life is full of uncertainties, and sometimes, financial priorities change. If you find yourself in a situation where continuing your LIC policy is not aligned with your current needs, surrendering it might be an option worth considering.
What Is the Surrender of LIC Policy?
Surrender of an LIC policy is a way for a policyholder to end their life insurance policy before its expiry date. By surrendering a LIC policy online, a policyholder is essentially asking for the early cancellation of the policy in exchange for an amount of money called the "surrender value".
Benefits of Surrendering LIC Policy Online
Accessibility and Convenience: Surrendering LIC policy online eliminates the need for physical visits to branch offices.
Time-Efficient Process: The online surrender process is designed to be time-efficient.
Less Documentation: Going digital often means less paperwork.
How to Surrender LIC Policy Online Before Maturity?
Want to know “how to surrender lic policy online”, follow the steps:
Collect Your Documents: Collect all the necessary documents such as your policy, ID proof, and address proof.
Go to LIC's Official Website: Visit LIC's official website and find options related to canceling your policy there.
Enter Your Policy Details: Type in your policy details accurately.
Complete the Cancellation Form: Fill out the online cancellation form with the necessary details.
Payment Process: LIC might ask you to pay any outstanding premiums or charges before processing the cancellation.
When Can You Surrender the LIC Policy Online?
Here are the terms to know when you can surrender your LIC policy online:
Policy Lock-In Period: LIC policies typically have a lock-in period during which surrendering may not be allowed.
Surrender Value Accumulation: Policies often accrue surrender value after a specific number of years, and surrendering before this period might not be financially beneficial.
Maturity Date: Every LIC policy has a maturity date, which is the point at which the policy reaches the end of its term.
What are the Types of Surrenders in LIC Policy?
Full Surrender: A full surrender involves terminating the entire policy and surrendering all benefits associated with it.
Partial Surrender: Unlike a full surrender, a partial surrender allows the policyholder to withdraw only a portion of the policy's accumulated value while keeping the policy in force.
Documents Required to Surrender LIC Policy Online Before Maturity
Original Policy Bond Documents
Request for Surrender Value Payment
LIC Surrender Form 5074
Original ID Proof
Cancelled Cheque
Hand-Written Reason Letter
What Happens After Surrendering the LIC Policy?
Calculation of Surrender Value: After receiving your surrender request, LIC will calculate the surrender value of your policy.
Payout Process: Once the surrender value is determined, LIC initiates the payout process.
Deductions and Charges: The surrender value is often subject to deductions, including surrender charges and any outstanding loans against the policy.
Conclusion
In conclusion, surrendering LIC policy online is a significant financial decision that requires careful consideration. This guide has provided you with the information needed to understand the process, types of surrenders, and alternatives available.
FAQs
Q1: Can I surrender my LIC policy at any time?
No, surrendering a policy is allowed only during a specific period. Check your policy terms or consult with LIC for details.
Q2: Is there a penalty for surrendering my LIC policy before maturity?
Depending on the policy, surrendering early may result in a reduction of the surrender value. Refer to your policy documents for specific details.
Q3: Are there tax implications when surrendering an LIC policy?
Yes, surrendering a policy may have tax implications. Consult with a tax advisor to understand the potential tax consequences.
