LIC Policy Surrender Rules: Life Insurance Corporation of India, the country’s largest insurance company, keeps coming up with different policies for different income groups. You can invest in these policies according to your need and income. But it has been seen many times that after taking the policy, the policy holder does not like it. In such a situation, LIC also gives the facility to surrender it. After this, you can also withdraw the deposited amount in the form of premium.
Learn about the rules related to surrender-
The thing to note is that if you surrender the LIC policy within three years after purchasing it, then you will not get even a single rupee. On the other hand, for a period of more than 3 years, you will get the surrender value as per the rules of LIC. LIC fixes a surrender value at the time of taking the policy. It is decided according to the policy. If you return the policy after 3 years, you will get that surrender value.
How much is the surrender value
According to LIC rules, if you have paid premium for a policy for three years, then in such a situation you will definitely get the surrender value. Bonus along with the premium paid will be multiplied by X factor of the surrender value to calculate the surrender value. This amount will be given to the investor at the time of surrendering the policy. Keep in mind that you do not get a single rupee surrender value on the premiums paid in the first year. In such a situation, the more late you surrender the policy, the more benefit you will get.
These documents will be required to surrender the LIC policy-
- Policy bond documents will be required
- lic surrender form
- LIC NFET Form-5074
- bank details
- ID Proof like Aadhaar Card, PAN Card and Driving License
- cancel check
- An application to LIC indicating the reason behind surrendering the policy.
Policy surrender process-
- To surrender LIC policy, go to LIC branch and take LIC surrender form, NEFT form.
- Fill both and attach it to your PAN card and policy bond.
- After this, submit an application by writing why you are leaving this policy.
- After this, LIC will cross check all the documents and return the policy money.
