[10/01, 2:49 pm] Mokash Bhatia: Is there any LIC Policy for 2 years?
This 2 year temporary assurance policy is a pure term insurance policy for a SMALL period of 2 years which is primarily for temporary protection only. In this plan, if the Life Insured dies within the period of 2 years, the nominee will get the entire Sum assured but nothing is payable on maturity.
[10/01, 2:50 pm] Mokash Bhatia: What is the minimum amount for LIC policy?
The minimum sum assured offered under this policy is Rs. 10,000, while the maximum amount is Rs. 50,000. This policy cover can be taken by anyone between the age of 18 to 55.
[10/01, 2:50 pm] Mokash Bhatia: Which policy is best in LIC for short term?
LIC Short Term Investment Plans in 2023
LIC Bhagya Lakshmi Plan. This is a payment protection plan, and an individual can maximize their money under this plan. ...
LIC Jeevan Mangal Plan. This is one of the microinsurance plans that promise the return of premiums when the plan is matured.
[10/01, 2:52 pm] Mokash Bhatia: Is there any short term LIC policy?
LIC Saral Jeevan Bima offers short-term risk cover on your life.
...
LIC Saral Jeevan Bima.
Eligibility Criteria Minimum Maximum
Sum Assured Amount Rs.5,00,000 Rs.25,00,000
Entry Age 18 years 65 years
Maturity Age - 70 years
Policy Tenure 5 years 40 years
[10/01, 2:54 pm] Mokash Bhatia: Sign In
Term Life Insurance
Investment Plans
Health Insurance
Motor Insurance
Other Insurance
Business Insurance
Renewal
My Account
Register A Complaint
tollfree noSales1800-208-8787
tollfree noService1800-258-5970
Download Mobile App
Googleplay Ios
Surrendering LIC Policy Before Maturity Time: Your Guide!
The Life Insurance Corporation of India is one of the most prominent insurance companies. Read more
Buy LIC policy online hassle free
Guaranteed maturity with life cover for securing family's future
Tax saving under Sec 80C & 10(10D)
Sovereign guarantee as per Sec 37 of LIC Act
Now Available on Policybazaar
LIC life insurance
Grow wealth through
100% Guaranteed Returns with LIC
Your Name
India
+91
Your Mobile
View Plans
By clicking on "View Plans", you agree to our Privacy Policy and Terms of Use
#Discount offered by insurance company
Get Updates on WhatsApp
Home LIC of India Articles-Lic Surrendering LIC Policy Before Maturity Time
Top LIC Plans 2023
You Invest: ₹10,000/month
Invest For: 15 Years
Age: 30 Year
Market Linked Plan
SIIP
SIIP (Plan no. 852)
Get Details
Invest
₹10K /month For 15 Years
You Get
Market Linked
₹72.7 L
In 15th Year
Returns+
18.32%
RSI *
Guaranteed Income Plan
Jeevan Umang
Jeevan Umang (Plan no. 945)
Get Details
Invest
₹10K /month For 15 Years
You Get
Guaranteed
₹1.22 L/year
Wholelife
Bonus
₹1.74 Cr
Paid to nominee
Guaranteed Lumpsum Plan
Bima Jyoti
Bima Jyoti (Plan no. 860)
Get Details
Invest
₹10K /month For 15 Years
You Get
Guaranteed
₹30 L
In 20th Year
What Is Surrender Of LIC Policy?
When you opt out of a policy before its maturity, it is called surrendering the policy. The amount that you receive at the time is the LIC policy surrender value. The life cover stops immediately and you won’t be able to revive it in the future.
Surrender of policy is not recommended since the LIC surrender value will always be substantially lower than the original benefits promised.
How Is LIC Surrender Value Calculated?
For a regular policy, the LIC policy surrender value can be calculated only after the policyholder has paid the premiums continuously for 3 years. Therefore, if you decide to surrender your policy in the first 2 years, you will receive no incentive from LIC.
The surrender value of the policy can be calculated as:
{Basic sum assured (number of premium paid/ total number of premium payable) plus total bonus received} multiplied by X, where X is the factor of surrender value.
LIC Plans
LIC of India
LIC SIIP
LIC Jeevan Labh
LIC New Jeevan Anand
LIC Jeevan Umang
LIC Pension Plus
Payment In Case Of Surrender
Surrender value is determined by LIC policy surrender processing time. There are 2 types of surrenders available. Let’s check them out:
Guaranteed Surrender Value (GSV)
Under the guaranteed surrender value, the policyholder can surrender their policy only after the completion of 3 years. This means that the premium has to be paid for a minimum period of 3 years. If you surrender after 3 years, the surrender value will be around 30% of the premiums paid till date. However, this is excluding the premium paid in the first year and the premiums paid towards accidental benefit riders.
So, the later the policy is surrendered, the higher will be the LIC surrender value.
Special Surrender Value
It is usually higher than the guaranteed surrender value. This is how special surrender value for LIC policies work –
If you pay premiums for more than 3 years but less than 4, you get up to 80% of maturity sum assured.
If you pay premiums for more than 4 years but less than 5, you get up to 90% of maturity sum assured.
If you pay premiums for more than 5 years, you get up to 100% of maturity sum assured.
The maturity sum assured will be calculated based on how much premiums have been paid. It will be calculated as –
(Original sum assured *(number of premiums paid/ number of premium payable) + total bonus received) * surrender value factor.
An Alternative to LIC Policy Surrender
Instead of surrendering your LIC policy, you can stop paying premiums but continue your life cover. This is when the policy becomes a paid-up policy. Under a paid-up policy, the sum assured decreases. This reduced sum assured is called paid-up value.
The life cover goes on till the end of the policy term. On death or maturity of the LIC policy, the reduced sum assured or the paid-up value is offered.
Paid-up Value versus Surrender Value
As we can see that paid-up value and surrender value sounds quite similar. So, here is a table that will help you get a clarity between these two:
Features Paid-up Value Surrender Value
Lump-sum Payment It is paid at the end of the policy term Immediately given to the policyholder
Maturity of the policy or Life assured's death Total paid-up value is provided No compensation is offered
Extra future bonus Non-eligible Non-eligible
Premium payments Immediately stopped Immediately stopped
When Can You Surrender The LIC Policy
Every LIC policy has its own terms and conditions and the policyholder is advised to read them carefully before buying the policy. The period of surrendering any policy varies from one another, depending on their time of purchase and the premium paying terms. The usual minimum period to surrender LIC policy in normal scenario is as follows:
Under Single Premium Plan
Under this plan, policy can be surrendered in the second year of purchase. Surrender of policy can never be made in the first year of policy purchase.
Under Limited Period And Regular Premium Plan
Under this plan, usually the terms and conditions vary of different policies. But in general,
If the policy is of 10 years or less, the policy surrender duration is 2 years
If the policy is of more than 10 years, the minimum duration is 3 years.
How To Surrender LIC Policy
Even though it is not advisable to surrender your policy, if you still wish to do so, here are the documents you will need.
Documents Required For Policy Surrender
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
Why should you not surrender LIC Policy?
You will lose the protection of the life cover.
Premiums get higher as you grow older. Therefore, surrendering a policy and then buying a new one will eventually cost you more.
The surrender value is a lot lower than what you originally invest in the policy. You are actually losing money by surrendering your LIC policy.
Conclusion
To conclude, by surrendering the LIC policy, the customer loses out on a lot of benefits of the scheme. If surrendered before a definite period, the amount of premium is much higher than the value received. Therefore, retention of existing policies and continuation of all policies without allowing them to lapse is the best strategy for continuing life insurance protection.
LIC Resources
LIC Online Services
LIC Investment Plans
LIC Other Plans
LIC
LIC Jeevan Umang Plan
LIC Term Insurance Plans
LIC Policy Details Online
LIC Jeevan Lakshya Plan
LIC Pension Plans
LIC Online Premium Payment
LIC Money Back Policy
LIC ULIP Plans
LIC Online Registration
LIC New Jeevan Anand
LIC Child Plans
LIC Online Login Portal
LIC New Endowment Plan
LIC One Time Investment Plan
LIC Premium Calculator
LIC Pension Plus
Secure Future Tomorrow
LIC Calculator
One time
Monthly
10,000
Amount I wish to invest₹
10
Invest for (Years)Till 2033
20
Stay invested for (Years)Till 2043
8
Expected rate of return (in %)/ Year
You invest
₹12 L
Over 10 Years
You get
₹39.8 L
After 20 Years
View plans
Insurance
General Insurance
Life Insurance
Investment
Health Insurance
Other Insurance
Resources
Articles
Customer reviews
Insurance companies
Newsroom
Our investors
Awards
PB Life
Company
About Us
Sitemap
Careers
Legal & Admin policies
ISPN
Contact us
Verify your advisor
Payment Methods
Secured With
Follow us on
Policybazaar Insurance Brokers Private Limited CIN: U74999HR2014PTC053454 Registered Office - Plot No.119, Sector - 44, Gurgaon - 122001, Haryana Tel no. : 0124-4218302 Email ID: [email protected]
Policybazaar is registered as a Direct Broker | Registration No. 742, Registration Code No. IRDA/ DB 797/ 19, Valid till 09/06/2024, License category- Direct Broker (Life & General)
Visitors are hereby informed that their information submitted on the website may be shared with insurers.Product information is authentic and solely based on the information received from the insurers.
