Surrendering LIC Policy : What Needs to be Done (2024)

FAQs

What is required to surrender LIC policy? ›

Documents Required to Surrender LIC Policy

Form 5074- Surrender discharge voucher. Hand-written application letter stating the reason to cancel the LIC policy. LIC NEFT mandate form. Original ID proof such as PAN Card, Aadhar card, or driving license.

Complete the policy surrender form and visit the nearest branch of the insurer to submit the following: KYC Documents – Photo ID, Address Proof. Bank Account Proof – Passbook Copy, Cancelled Cheque. Original policy document.

Guaranteed Surrender Value = 30% X Total premiums paid. The first-year premiums and all the added premiums or premiums for accident benefit or the term rider are excluded from the same. The percentage to be paid may depend on the policy plan and the year in which an individual will surrender the policy.

Is this content inappropriate? Surrender of my LIC policy due to personal circ*mstances. I request you to kindly do the needful and credit the proceeds through an account payee check to my savings account [Enter your savings account number here.], here.]

Putting the above data in the formula for calculating the LIC guaranteed Surrender Value after 10 Years, we get (5,48,690 multiplied by 60%) plus (5,00,000 multiplied by 18.6%), which is equal to Rs. 4,22,214. This is the LIC surrender value you will receive if you surrender your policy after 10 years.

Step 1 Policyholders must visit the LIC's nearest office branch or browse the LIC's official webpage on their device and sign up. Step 2 They can easily get the printout of the "Surrender Discharge Voucher" or LIC Form No. 5074 by downloading it directly via the website or visiting the LIC office.

In insurance, "surrender" refers to the voluntary termination of a life insurance policy by the policyholder before its maturity or before the event it insures against has occurred.

Special Surrender Value

If in case, the insurance holder has paid premiums for more than 4 years and less than 5 years, then 90% of the complete maturity sum is provided. If the policyholder is paying premiums for more than 5 years, then he/she receives 100% of the sum assured (maturity amount).

The surrender of an LIC policy online means that the policyholder is terminating the policy before its maturity date. Upon surrendering, the insured might receive a sum of money known as the surrender value, which is usually a percentage of the premiums paid minus any applicable charges.

How long does it take to get the surrender value of LIC policy? ›

To surrender the LIC policy, submit the relevant documents such as ID proofs, Aadhar card, PAN card, and canceled cheque with your name written on them. After completion of all the formalities, the cash will be transferred to your registered bank account within 7-10 working days.

Insurance companies may apply surrender charges as a percentage of the cash value or premiums paid. For example, a policy may impose a surrender charge of 10% of the cash value if surrendered within the first year, gradually decreasing by 1% each subsequent year.

Step 1: Go to the nearest branch of LIC or visit the insurer's official website. Step 2: Download or take a printout of the 'Surrender Discharge Voucher' (LIC Form No. 5074) at the LIC office. Step 3: Complete the form and submit it along with the necessary supporting documentation.

Originally Answered: How much money will I get by withdrawing my LIC Jeevan Anand policy after 5 years? You will get around 40%of premium paid by you . This would be the surrender value of premium paid and accumulated bonus . Insurance is a long term contract offering Insurance and tax free savings .

If 5 years have passed after you purchased your LIC policy, you are eligible for policy withdrawal. However, keep in mind that currently, the facility of surrendering LIC policy is not available online. So, it would be best if you surrendered the LIC policy through the service branch of LIC.