Want to surrender your LIC policy online? Before proceeding with this topic let me tell you that although you can do many things through LIC online portal, you can’t surrender a LIC policy online through the LIC portal. You have to visit the nearest LIC branch in your city or town and then ask for a policy surrender procedure.
LIC policy surrender processing steps
- Download LIC policy surrender form Online.
- Or visit to your nearest LIC branch and ask for policy surrender.
- Carry your original policy documents and other proofs.
- Fill up the policy surrender form without any mistake.
- Provide a canceled bank cheque.
- Fill up the LIC’s Neft form to get the amount in your bank account automatically.
- Ask for LIC policy surrender processing time after successful form submission.
Detailed Steps To Surrender LIC Policy Before Maturity, After 3 Years of Premium Payment
As I have already mentioned, the LIC policy surrender process is not possible online. So you have to follow the below step by step guide.
Step 1: First of all you have to visit your nearest LIC branch and ask for the policy surrender form. You can also download the LIC policy surrender form pdf [form no. 5074] online from LIC of India’s official website.
Step 2: Provide a canceled bank cheque leaf as now LIC sends the money directly to the beneficiary bank account directly after approval. You have to furnish the same while filling the LIC’s NEFT form.
Step 3: You also have to carry the original documents like Aadhaar, Driving License or PAN Card. And off-course the original LIC policy documents or policy bonds.
Surrender LIC policy online before maturity?
So, if you want to surrender a LIC policy then you should know the very basic term of policy surrender and that is policy should be paid 3 full year premium to get eligible for surrender.
In that case how to surrender Lic policy before 3 years duration online? This is not possible as you have to visit your nearest LIC branch office for further queries.
Can I Surrender LIC Policy Before 3 Years
The answer is very simple, as per process you can’t surrender your LIC policy before complete 3 years of premium payment. But then how to come out of LIC policy before 3 years?
In such a case, if you stop paying your LIC policy premium before 3 years of completion then your policy may get lapsed. You can also stop paying premiums before 3 years and go for a paid-up policy.
A lapsed LIC policy will not provide any benefit of insurance coverage when a paid-up policy will give you reducing the benefit of life insurance. Anyway, both one is not that beneficial when we are talking on LIC policy surrender.
How to cancel LIC policy online within 15 days
If you are planning to cancel your LIC policy within the first 15 days of receiving policy documents, then you can freely do that without paying any premium. As the policy has a free lock-in period, but the definition of surrender is totally different.
So, if you really want to surrender your LIC policy then you should do proper calculation about how much money you will get in return, The general formula is you will get 70% of the paid premium excluding the first year’s premium. This surrender rule may vary policy to policy and you should always refer to LIC policy documents and terms & conditions carefully before making the decision.
