How to Surrender LIC Policy Online Before Maturity (2024)

FAQs

How can I withdraw my LIC amount online before maturity? ›

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.

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.

Guidelines of LIC for Cancelling a Policy

You can surrender a policy only after you have paid its premiums for at least three consecutive years. The premium amount that you have paid for the first year of your LIC policy is excluded at the time of calculating the surrender value.

After payment of premiums for at least three years, the Surrender Value allowed under the policy is equal to 30% of the total premiums paid excluding premiums for the 1st year and all extra premiums.

There are no specific policy guidelines which are laid by the LIC to surrender their policy. However, if one wishes to cancel their policy or ULIPs much before the maturity date, then they can easily do it via visiting the company's website or LIC's nearest office branch.

LIC Surrender value calculator can easily be used online on any insurance company firm. Individual just has to provide some basic information as to his name, phone number, type of plan, term period, number of installments, payment mode, and premium to be paid, and the duration the policy has completed.

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.

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).

Yes, you can, although the only way to get back all your premium payments is to do so during the initial “free look” period. However, depending on the policy type and circ*mstances, you may receive some money from surrendering a whole life policy that has accumulated sufficient cash value.

How much will I get if I surrender my LIC policy 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.

Form 5074 is the surrender discharge voucher. Fill the form 5074 and submit it with the relevant documents. Or else, courier the filled form along with relevant documents to the LIC's head office. The process will begin.

When one stops paying premiums after a certain period, the policy continues but with a lower sum assured. This sum assured is called the paid up value. The more the number of premiums paid, the more will be the surrender value. The surrender value factor is a percentage of the paid-up value plus the bonus.

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).