Why we are thinking to Surrender the policy while we take it to secure future from financial Problem or Unexpected other risk. Some time we take to save tax U/s.80C also.
REASON TO SURRENDER :
There may be so many reasons to get it surrender. Might be you are not satisfy with the term & conditions or having some financial problem.
But before going to surrender your policy bond, you need to check that does your policy has surrender values.
All endowment or money back insurance plans accrue a surrender value after certain (lock-in) period.
Generally insurance policies acquire surrender value completions of three years of your policy. This may varies than the amount of premium paid.
Remember Term Insurance / Health Insurance policies are pure protection plans and do not accrue any surrender value.
Once you have decided to surrender your policy, here is how you go.
REQUIRED DOCUMENTS : -
I. Original Policy Bond / Certificate
II. Photocopy of last premium payment receipts
III. Photocopy of latest unit balance (in-case of market linked plan)
IV. Application for surrender value or LIC SurrenderRequest Letter
V. LIC Form No. 3510/5074
VI. LIC NEFT Mandate Form
VII. One Cancelled Cheques / Photocopy of Passbook (NEFT/RTGS Purposes)
All forms are self explanatory, fill all the forms accordingly and have some revenue stamps may require. With the above documents visit your home /servicing branch (office from where policy bond is issued). You can find it on your policy bond or on policy receipts. Only Policy holders can surrender the Policy Bond.
After verification all documents LIC officer will issue an Acknowledgement Receipts for the same. Surrendered process may take 15-20 days and the amount (Surrender Value) will be credited into your bank account directly.
POINTS TO REMEMBER : -
1. Surrender values are payable only after three full annual premium paid.
2. Surrender of policy is not recommended since the surrender value would always be proportionately low.
3. And When you decide again to go for an LIC Policy that would be with higher premium because of your
higher age .
This post first appeared on Save Tax Save Money With Life Health Insurance, please read the originial post: here