Question: Can I Withdraw LIC Before Maturity?

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..

Can we surrender Jeevan Anand policy?

The policy can be surrendered anytime provided two full years’ premiums have been paid. On surrendering after two policy years, the insurance company will pay a guaranteed surrender value of minimum 30% of all premiums paid after deducting the first year’s premium.

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 can I cancel my LIC policy and get money back?

So if you have traditional life insurance policy and want to discontinue it, there are two broad options: First, convert it into a paid-up policy without exiting, and second, surrender and ask the insurer for the surrender amount by completely exiting the policy.

What is special surrender value?

Special Surrender Value will be 80% of the Maturity Sum Assured if three or more years’ but less than four years’ premiums have been paid. … Special Surrender Value is usually higher than the Guaranteed Surrender Value, but it is at the discretion of the insurer.

Can I surrender Jeevan Saral after 10 years?

LIC Jeevan Saral – Key Features Maturity Benefit is Maturity Sum Assured + Loyalty Additions if any. … Optional higher cover through Term Rider and Accidental Death and Disability Benefit. You can select a maximum term but can surrender at any time without any surrender penalty or loss after 5 years.

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.

What is non guaranteed surrender value?

In other words, the non-guaranteed surrender value is the current market value of the assets held against the policy. This value depends on various factors such as the sum assured, bonus, policy term and the number of premiums paid.

Why is surrender value less than premium?

The Maturity Sum Assured here means the Maturity Sum Assured corresponding to the term for which premiums have been paid under the policy. … In some circumstances, in case of early termination of the policy, the surrender value payable may be less than the total premium paid.

What is the procedure to close LIC policy?

So if you have traditional life insurance policy and want to discontinue it, there are two broad options: First, convert it into a paid-up policy without exiting, and second, surrender and ask the insurer for the surrender amount by completely exiting the policy.

Can we change LIC policy term?

After the policy is issued, the policyholder in a number of cases finds the terms not suitable to him and desires to change them. LIC allows certain types of alterations during the lifetime of the policy. However, no alteration is permitted within one year of the commencement of the policy with some exceptions.

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.

Can we close LIC policy before 3 years?

New Delhi: Life Insurance Corporation (LIC) policies can be surrendered after the premiums have been paid for at least a minimum of three years. In case the policyholder surrenders the policy before three years, no surrender value.

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.

What is 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. …

What surrender means?

1a : to yield to the power, control, or possession of another upon compulsion or demand surrendered the fort. b : to give up completely or agree to forgo especially in favor of another. 2a : to give (oneself) up into the power of another especially as a prisoner.

What happens if I stop paying LIC premium after 3 years?

On surrendering the policy after three years, the insurance company will pay you a guaranteed surrender value equal to 30% of all premiums paid after deducting the first year’s premium. … Special Surrender value = 80% of Maturity Sum Assured if you have paid premiums for 3 or more years but less than 4 years.

How can I claim my LIC maturity amount?

Maturity Claims: The servicing Branch usually sends maturity claim intimations two months in advance. Please submit your Discharged Receipt in Form No. 3825 with original policy document atleast one month before the due date so that the payment is received before the due date of maturity claim.