Question: Can I Withdraw LIC Before Maturity?

Can I get my money back from LIC?

The LIC new money back policy can be surrendered only after it accrues cash value after payment of 3 years of premiums.

If policyholders stop paying the premium, the policy ceases to exist.

Nevertheless, if premiums have been paid for three years, a paid up value is accrued for a reduced sum assured..

What is special surrender value?

Special surrender value = (Original sum assured * (No. of premiums paid/No. of premiums payable) + total bonus received) * surrender value factor. When one stops paying premiums after a certain period, the policy continues but with lower sum assured. This sum assured is called the paid up value.

Can I surrender LIC policy before 3 years?

Mandatory Documents for Policy Surrender:Policy bond – the original copy.Printout of LIC policy surrender form No. … A cancelled cheque from the policyholder’s bank.Policyholder will be required to utilise the LIC NEFT form, if above-mentioned form No. … Proof of identification like Aadhaar card needs to be carried along.

How can I withdraw old LIC policy?

To claim maturity of the LIC policy one needs to send/submit the original policy document with Discharge voucher (form 3825),NEFT Mandate Form, Identity & Residence Proof, cancelled bank cheque before the due date to the LIC branch from where you had taken the policy.

How long does it take to surrender LIC policy?

If the customer prefers a cheque payout, the process takes 8-10 days. If the customer prefers a direct credit payout, the process takes 7-8 days(Ref). Any Traditional policy of LIC OF INDIA can be surrendered only after 3 years from Date of Commencement (DOC) of the LIC POLICY.

Is it good 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.

How can I cancel my LIC policy and get money back?

Documents Required for Surrender LIC PolicyOriginal Policy Bond.Download LIC Policy Surrender Form No. … Bank cancelled cheque leaf (your name should be printed on cheque) or bank passbook photocopy. … Fill LIC’s NEFT Form, if you are not using the above said Surrender Form and submit the same.More items…•

Can LIC policy be stopped?

If you wish to discontinue your life insurance policy for any reason, you can do so, but at a cost. In case of a term life insurance policy, if you stop paying the periodic premium, the policy automatically lapses, i.e., the risk cover ceases but there is no other additional downside or cost.

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.

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 calculated?

If you discontinue the policy, the amount you will get is called the special surrender value. This is arrived at by multiplying the total paid-up value (paid-up value + bonus) with a multiplier called the surrender value factor. The surrender value factor is a percentage of paid-up value plus bonus.

Which month is declared bonus in LIC?

LIC Bonus Rates 2020 – 2021(as per 2020 March Valuation) – All details with charts and illustrations. LIC of India has declared the latest bonus rates for the valuation period 1 st April 2019 to 31st March 2020.

How can I check my LIC policy surrender status?

Check LIC Policy Status Online (For Registered User)Step 1:You must visit the e-Service Portal of LIC. … Step 2:You will need to enter the login credentials namely, your User Name and Password.Step 3:Once you’re logged in your Services Account of LIC, you will see various options related to the account or your policy.More items…

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.