How can I surrender my LIC policy after 2 years?
How can I surrender my LIC policy after 2 years?
How To Surrender LIC Policy
- Original policy bond documents.
- Request for surrender value payment.
- LIC Surrender form- form 5074.
- LIC NEFT form.
- Bank account details.
- Original ID proof like Aadhar card, pan card or driving license.
- A cancelled cheque.
- Hand-written letter to LIC stating the reason to discontinue.
What happens if I stop paying LIC premium after 2 year?
For policies with a lesser term, at least two years’ premium payment is mandatory. In case you haven’t paid even 2 or 3 years’ premium (as per the case above) and want to discontinue, the insurer will not pay you back anything and will not convert it into a paid-up policy either. The money is all but lost.
What is the policy surrender duration of LIC policies?
But in general, If the policy is of 10 years or less, the policy surrender duration is 2 years If the policy is of more than 10 years, the minimum duration is 3 years. All the LIC policies can be surrendered after 3 years’ policy premiums have been paid.
When can I Surrender my policy?
Surrender can be done from the third policy year. In case of longer tenures of 10 years and up, the minimum duration is 3 years. The policy can be surrendered from the 4th year onwards. What is paid in case of surrender?
What if I don’t want to continue my LIC policy?
If you don’t want to continue LIC policy for any reason then LIC gives you an option to surrender your Policy. There are Lock in period for 3 years in Endowment Plan and 5 years for ULIP plan. LIC policy is not allowed in LOCK in period. It does not matter of policy term but it is clear that delay in surrender gives you better amount.
What happens to my tax benefits if I Surrender my ULIP?
Tax benefits for traditional life insurance policies are revoked if the policy ceases to exist/is surrendered within two years of the commencement date whereas for ULIPs, this period of time is extended to five years. Typically, there are two types of surrenders available in this scenario: