- Shailesh Kumar Co-founder, Insurance Samadhan . Answered on November 01,2022 What is the average premium that should be paid for a family floater policy from Life insurance Corporation (LIC) or State Bank of India (SBI) Life? DearFamily Floaters are available in Health Insurance and not in Life Insurance .Neither LIC nor SBI Life offers family ... 1 0 107
- Shailesh Kumar Co-founder, Insurance Samadhan . Answered on October 13,2021 An LIC agent told me that if I invest 5 lakh per year for 5 years in SBI Life Retire Smart scheme, then from 10th year onwards I will get 40000 per month pension for rest of my life. And after our expiry (me and my spouse), nominee will get the Corpus amount. Is it true or Am I missing something? How to verify it? DearYou have been given wrong information through mis-selling .Facts are stated below :SBI Retire Smart is a Unit Linked ... 1 0 1910
- Shailesh Kumar Co-founder, Insurance Samadhan . Answered on December 23,2021 What are underwriters in a life insurance policy? DearUnderwriters assesses the risk on the basis of Proposal . Each Proposal form has material facts and underwriters can ... 1 0 44
- Shailesh Kumar Co-founder, Insurance Samadhan . Answered on November 03,2021 Is it advisable to take a life insurance for a senior citizen at the age of 62 years? DearIt is not advisable as mortality cost becomes very high . Moreover, by age 62 all financial liabilities are ... 1 0 168
- Shailesh Kumar Co-founder, Insurance Samadhan . Answered on January 31,2023 I need a Life Insurance cover of 1cr. ShouldI take up to 1cr including ADD ONs or should it be 1cr plus add ons? Should my total cover include add ons or exclude add ons? DearGo for basic cover of Rs 1 crore which is guaranteed under all deaths .You can add add ons ... 1 0 26
- Shailesh Kumar Co-founder, Insurance Samadhan . Answered on November 15,2022 How do you transfer an existing LIC or SBI life insurance policy to a new address after shifting? They will be pleased to help . Send a request letter along with an authorised address proof . 1 0 52
- Shailesh Kumar Co-founder, Insurance Samadhan . Answered on December 08,2022 How do you change your premium date with Life insurance Corporation of India (LIC)? DearIt is like marriage date , you can not change your Policy anniversary . 1 0 60
- Shailesh Kumar Co-founder, Insurance Samadhan . Answered on September 17,2022 If I buy a term insurance plan from any insurer and unfortunately the company gets shutdown in the middle of term then what happens to my insurance policy, will it be active or not for the entire term? DearAs per Insurance Act , no insurance company can shut down . At the most , another company would ... 1 0 142
- Shailesh Kumar Co-founder, Insurance Samadhan . Answered on February 14,2022 If I opted for an Endowment plan of 1 crore cover and nothing happens to me in the covered period, does the insurance company returns 100% of the amount I paid all these years after the maturity of the policy? Yes , that is the meaning of endowment .On maturity , you receive guaranteed sum assured along with accrued ... 1 0 45
- Shailesh Kumar Co-founder, Insurance Samadhan . Answered on March 01,2022 If I opted for an Endowment plan of 1 crore cover and If I'm getting hospitalized, does this policy covers the bill amount as well? Or that come under health insurance? Life insurance covers risk of death unless you had taken critical illness rider .For medical , you need Health ... 1 0 20
- Shailesh Kumar Co-founder, Insurance Samadhan . Answered on December 26,2021 Is there any reliable website to check the claims made by LIC agents regarding the schemes? It should be easy to understand as well. DearEach website has their own purpose and give their own interpretations .Every person need to verify all facts under ... 1 0 36
- Shailesh Kumar Co-founder, Insurance Samadhan . Answered on November 06,2021 I took an LIC term plan (Plan no. 825) at the age of 25 (2018), which did not had any option of add ons at that time. How can I correct this now for both Critical Illness and Disability Addon ? Any alt solution ? DearAs per my knowledge , riders are not available in table no 825 .You can buy Critical illness and ... 1 0 28
- Shailesh Kumar Co-founder, Insurance Samadhan . Answered on January 16,2023 What is a vested bonus in an LIC policy? DearLIC declares bonus each year which gets attached to Policy but one can not use it till maturityFor example ... 1 0 867
FAQs
How much time does it take to get money after surrender a 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.
Does LIC refund money if I cancel my LIC policy? ›Guidelines of LIC for Cancelling a Policy
Generally, only 30% of the premium amount paid by you is returned in the form of surrender value. The real percentage of the surrender value can vary as per the policy terms and the premiums that you have paid so far.
Surrender fees and waiting period
This waiting period is determined by the specific policy type and insurance company. It may be as short as a few years or as long as 15 years. Some companies will allow you to surrender a policy during this time, but typically for significantly higher fees and lower payout.
This is the value which is the amount payable to you should you decide to discontinue the policy and encash the same from LIC. 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.
What is the refund of policy surrender? ›You will not get any of the premium amounts paid in the first year in your surrender value. In general, the surrender value is returned to the policyholder at 30% of the premium amount. The actual surrender value may vary according to the policy term and the number of premiums you have paid.
How much money will I get if I surrender my policy? ›According to the LIC brochure: Guaranteed Surrender Value = 30% X Total premiums paid. The first-year premiums and all the added premiums or premiums for accident benefits or the term rider are excluded from the same.
How do I check my LIC policy surrender value? ›In case you surrender your LIC after 3 years, your surrender value will be approximately 30% of the total premiums paid. However, the premium paid for the first year and the premiums paid towards accidental benefits coverage riders are excluded from it.
What are the disadvantages of surrendering LIC policy? ›Drawbacks of Surrendering LIC policy
If in case an insurance holder wishes to invest in the same policy after few years, then he/she is required to pay an additional premium amount. This is because the age of an individual is increased and the risk of death is also getting increased.
If you find yourself in a situation in which having life insurance no longer makes financial sense, surrendering your policy is one option to get something for it. Surrendering a life insurance policy is canceling coverage for the cash value of the policy, minus any surrender fees.
How do I claim surrender value? ›Surrender value is calculated by multiplying your total premium paid with the surrender value factor. In case of special surrender value, the amount is calculated by multiplying the paid-up value and bonuses with the surrender value factor.
What is surrender fee period? ›
A "surrender charge" is a type of sales charge you must pay if you sell or withdraw money from a variable annuity during the "surrender period" – a set period of time that typically lasts six to eight years after you purchase the annuity.
Will I get a 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.
Is it better to surrender LIC? ›Loss of Life Coverage: Surrendering ends life insurance coverage, impacting the original family protection purpose. Long-Term Financial Impact: LIC policies are long-term financial tools. Surrendering early might mean missing potential benefits and returns that accrue over time.
How much does a LIC policy give returns? ›In LIC policies, you get a tax free return of approx 4 % provided you continue the plan till maturity.
How long does it take for LIC claim to settle? ›LIC's claim settlement time depends on the type of claim that is being raised. However, the IRDAI mandates every insurer to attempt to settle all kinds of claims within 30 days from the receipt of requisite documents.
How long does it take to get money back from a life insurance policy? ›In many cases, it takes anywhere from 14 to 60 days for beneficiaries to receive a life insurance payout. But many factors impact this time frame. These include the insurance company's procedures, when the claim is filed, how long the policy was active, the cause of death, and state laws regarding insurance payouts.
What is the surrender payout of a policy? ›As well, policy surrender is typically allowed after 3 years of premium payments under the guaranteed surrender value. Surrendering after this period may result in a surrender value of approximately 30% of the premiums paid so far. For personalised advice, it is a good idea to consult a financial advisor.
What is the surrender value of LIC after 10 years? ›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.