How Do I Surrender My Post Office Life Insurance?

Will I get bonus if I surrender my LIC policy?

Once you have surrendered your LIC policy, the insurer will provide you with a portion of money known as ‘accumulated bonus’ along with the premiums that you have paid for that period of time..

How do I cancel my postal life insurance policy?

To cancel the coverage all you have to do is leave that section blank. If this same employee had Option A and wanted to keep that coverage they would sign and date in the Option A section. The same would be true if the employee wanted to keep Family Coverage or Option C.

How is surrender value of postal life insurance calculated?

{Basic Sum Assured X (Number of Premiums Paid/Total Number of Premiums Payable) plus total bonus received}X Surrender Value Factor. Earlier, we calculated the paid-up value as Rs 75,000. … If you discontinue the policy, the amount you will get is called the special surrender value.

What is guaranteed surrender value?

Definition of ‘Guaranteed Surrender Value’ Definition: The guaranteed surrender value is the amount guaranteed to the policy holder in case of voluntary termination of the policy by the policy holder before maturity. Description: Surrender of the policy before maturity attracts penalty in the form of surrender charges.

What happens when you surrender life insurance policy?

By surrendering your policy, you’re agreeing to take the cash surrender value that the insurance company has assigned to your policy, and in return, forgoing the death benefit. Whole and universal policies accrue cash value, making them the most likely option for surrender.

When can I surrender my life insurance policy?

a) Guaranteed surrender value: You are guaranteed a fixed percentage of premiums paid depending on when you surrender. If you close after 2/3 years, you will be ensured 30% of premiums paid. If you close between 4 and 7 years, you will get 50% of premiums paid.

Who qualifies for postal life insurance?

Anyone who is an employee of the specified governments, armed forces, institutions and organisations, can apply for the policy provided they are over 19 years of age but below 55 years. The Postal Life Insurance policy offers a cover from Rs. 20,000 to Rs. 50 lakh.

Should I surrender my life insurance policy?

There are many reasons for no longer holding on to a life insurance policy. That said, to simply recommend that clients surrender a policy instead of considering alternatives that allow them to still benefit from it, either in the form of a payout or by lowering the premium costs, is not wise advice.

How can I check my PLI policy status?

You can check your Postal Life Insurance Policy status online by logging on to the official website of Indian Post, i.e. www.indiapost.gov[dot]in. You need to click on ‘customer care’ on the top. On clicking on the tab, you will see a drop-down list and you need to pick complain registration option.

What is difference between cash value and surrender value?

The surrender value is the actual sum of money a policyholder will receive if they try to access the cash value of a policy. … In most cases, the difference between your policy’s cash value and surrender value are the charges associated with early termination.

How much money will I get if I surrender my LIC policy?

Guaranteed Surrender Value: The policy can be surrendered after it has been in force for at least 3 full years. The Guaranteed Surrender value will be equal to 30% of the total amount of premiums paid excluding the premiums for the first year and all the extra premiums and premiums for accident benefit / term rider.

Is postal life insurance better than LIC?

Premium Rate-When compares to LIC or any private insurers, PLI offers cheap premium. So this is the most advantage of buying endowment plans with PLI than with LIC. Bonus Rate-Bonus offered by PLI is in the range of 7% or more. Whereas currently, LIC offers a bonus rate of around 4% to 5%.

Can I surrender my PLI policy?

Can one get the full amount paid with accrued bonus, if policy is surrendered prematurely? … Children policy can be surrendered after 60 months. No surrender for AEA policy. Bonus will be taken into account after 5 years for surrender value calculation on the paid up value.

What is the meaning of surrender value?

Definition: It is the amount the policyholder will get from the life insurance company if he decides to exit the policy before maturity. A regular premium policy acquires surrender value after the policyholder has paid the premiums continuously for three years. …

Which postal life insurance is best?

Salient Features of PLI policiesWhole Life Assurance (Suraksha) Minimum & Maximum age at entry: 19-55 years. … Anticipated Endowment Assurance (Sumangal) It is a Money Back Policy with maximum sum assured of ₹ 50 lacs, best suited to those who need periodical returns. … Children Policy (Bal Jeevan Bima)