Question: How Much Will I Get If I Close My LIC Policy?

What is the best time to surrender LIC policy?

This policy can be surrendered at any time.

However, if you surrender it before completion of three years, you will not get any sum in return.

On surrendering after three policy years, the insurance company will pay a guaranteed surrender value equal to 30% of all premiums paid after deducting the first year’s premium..

Can I surrender my LIC policy after 10 years?

If the PPT is less than 10 years (even if the actual policy term is 25, 30 years), the policy will acquire a surrender value if the premium has been paid for at least two years. For single premium policies, the surrender value gets acquired after the first year itself.

Is it worth to surrender LIC policy?

Surrender value is payable only after three full years premiums are paid to LIC. More over if it is a participating policy the Bonus get attached to it as per prevalent rules. Surrender of policy is not recommended since the surrender value would always be proportionately low.

Can I withdraw my LIC policy?

A policyholder can surrender his/her policy only after the completion of 3 years, i.e. the policy has to have been in force for a period of 3 years, at least. The surrender value provided by LIC is essentially 30% of the premiums that have been paid so far.

Can I surrender LIC policy in any branch?

The LIC policy can only be surrendered at the branch, where it’s currently being served (i.e. Servicing Branch). So you need to change the policy servicing branch first, before surrendering it.

Can I claim LIC maturity amount online?

The LIC website states that policyholders can send the claim requirements by email. The mail should be sent to claims.bo @licindia.com where the branch code is the servicing branch. For instance, if 883 is the servicing branch, the mail will have to be sent to claims.bo883@licindia.com.

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.

How is surrender value of LIC calculated?

Check LIC Policy Status for Surrender Value: You can compute the surrender value of your LIC policy by making use of the simple formula: Basic Sum Assured (Total number of payable premiums/Number of paid premiums) + Total bonus you receive x Surrender Value Factor.

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. …

Is there any LIC policy for 5 years?

Jeevan Mangal Plan by LIC is a term insurance plan which can be brought for a term of 5 years only through the single premium payment option that pays returns in the form of a premium on the maturity of the plan.

Can I get money back if I cancel my life insurance?

Less obvious is that once you cancel your life insurance policy, you will not get any of your paid premiums back. If you have a term life policy, you won’t get any refund or cash if you cancel your policy or let it lapse. (Whole life policies with a cash value may provide some cash when canceled.)

Can I withdraw my LIC policy before maturity?

It is the option to exit from life insurance product before maturity wherein policyholder will get the amount which is called as Surrender Value. A regular premium policy will be eligible for surrendering after the policyholder has paid the premiums continuously for 3 years.

Will I get bonus if I surrender my LIC policy?

Depending on the terms and conditions of the LIC policy, the accumulated bonus will be given. Since surrendering a policy is considered equivalent to breaking a contract, the policyholder will receive only a limited portion of money that he/she has paid as premiums.

Why is surrender value less than premium?

However, borrowing in the initial years of the policy is not suggested as a you would acquire low surrender value. By surrendering a policy, the customer loses out on all the benefits of the scheme and receives a much lower amount than the premiums he has already paid.

Which month is declared bonus in LIC?

LIC of India has declared the latest bonus rates for the valuation period from 1st April 2018 to 31st March 2019. You may be knowing that LIC shares its valuation surplus or profit to the policyholders in the form of Bonus and Loyalty Additions.