We all have been buying LIC policies and most of the times without understanding its aspects and benefits. Though, later we realize that such LIC policies are inappropriate. Hence, we start working on getting rid of such policies. The most appropriate way to purge such LIC policies is to surrender them.
Surrender of life insurance policy is an option to terminate the life insurance product before maturity and by opting so the policyholder will get an amount commonly known as Surrender Value. If the policyholder has paid the premiums incessantly for 3 years, then, he or she is eligible for surrendering their regular premium policy.
Surrendering a policy has its own merits and demerits. Sometimes after surrendering a LIC policy you get only a part of the total accrued bonus and the premium you have paid, hence, you may not gain any profit out of it.
Following are the steps to Surrender LIC Policy: First and foremost, thing to realize is that, you cannot Surrender a LIC policy ONLINE. In addition, LIC policy can only be surrendered at your servicing LIC branch as all the documents related to the policy ranging from proposal forms, loan and other details lies there. Servicing branch is generally referred to the branch from where you procured the policy. In case, if you have changed the branch, then the updated LIC branch acts as the servicing branch for you.
Furthermore, to request for surrender of the LIC policy you have to visit the branch personally.
Following documents are required to Surrender LIC Policy:
- Policy Bond in Original
- Download the LIC Policy Surrender Form. Keep a printout of this form along when you visit the branch.
- A canceled cheque or photocopy of the bank passbook. This information is required to make a direct payment to the beneficiary bank account.
- The original documents of your ID Proofs
After successful submission of the above-mentioned documents, it takes about a week to transfer the fund to your bank account.