Surrendering a Life Insurance Corporation (LIC) policy involves terminating the policy before its maturity to receive the surrender value. Here’s a step-by-step guide to help you through the process:
1. Understand the Implications
Surrender Value: Calculate the approximate surrender value, which is typically a percentage of the premiums paid minus the applicable deductions.
Loss of Benefits: Be aware that surrendering a policy means losing out on future benefits and life cover.
2. Check Eligibility
Policy Duration: Ensure the policy is eligible for surrender. Generally, a policy must be in force for at least 3 years to be eligible.
Premiums Paid: Ensure all due premiums up to the surrender date have been paid.
3. Gather all the Necessary documents.
Original Policy Bond: The original policy document issued by LIC.
Surrender Form: Obtain Form No. XXXX (Surrender Form) from the LIC website or branch.
ID Proof: A valid ID proof such as Aadhaar card, PAN card, passport, etc.
Bank Details: Canceled cheque or a copy of the bank passbook for the account where the surrender value will be credited.
4. Fill Out Forms
Surrender Form: Complete the surrender form with accurate details.
Discharge Voucher: Fill out the discharge voucher (if applicable) provided by LIC.
5. Submit Documents
Visit Branch: Go to the nearest LIC branch where your policy is serviced.
Submission: Submit the filled-out surrender form, original policy bond, ID proof, and bank details.
6. Verification
Verification Process: The LIC office will verify the submitted documents and process your surrender request.
7. Await Confirmation
Processing Time: It typically takes a few days to a couple of weeks for LIC to process the surrender request.
Confirmation Receipt: Once processed, you will receive a confirmation of the surrender request.
8. Receive Payment
Payment Mode: The surrender value will be credited to your provided bank account or sent via cheque.
Check Amount: Verify the credited amount against the estimated surrender value.
9. Follow Up
Status Check: If there is any delay or discrepancy, follow up with the LIC branch or contact their customer service.
Keep Records: Maintain records of all documents submitted and communications with LIC.
Detailed Steps:
Calculate the surrender value:
Use the LIC online calculator or consult an LIC agent to get an estimate.
Gather Documents:
Policy Document: Original policy bond.
Surrender Form: Form No. XXXX.
ID Proof: a photocopy of a valid ID.
Bank Details: Canceled cheque or bank passbook copy.
Fill and submit the forms:
Complete Form No. XXXX with accurate details.
Visit the LIC branch where the policy is serviced.
Submit the completed form along with the original policy document and ID proof.
Verification and processing:
LIC will verify the documents and process the request.
This might include a visit or call for further verification.
Receive surrender value:
The surrender value will be credited to your bank account or sent via cheque.
Ensure the amount matches the estimated surrender value.
By following these steps, you can successfully surrender your LIC policy and receive the surrender value. If you encounter any difficulties, consider seeking assistance from an LIC agent or visiting the nearest LIC branch for personalized support.
Parag Nesarikar
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