Can I Withdraw LIC Before Maturity?

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..

What is the surrender value of LIC policy after 10 years?

Surrender Value Factors for the Bonus accruedSurrender YearPolicy Term (years)823.38%17.58%925.05%17.66%1027.06%17.85%1130.00%18.16%18 more rows•Apr 24, 2018

Do you get money back if you cancel life insurance?

You do not get money back after canceling term life insurance unless you cancel during the policy’s free look period, in which case you’ll receive a refund of any premiums you’ve already paid. You may receive some money from your cash value if you cancel a whole life policy, but it will be taxed as income.

How long does it take to surrender LIC policy?

A policyholder can surrender his/her policy only after the completion of 3 years, i.e. the policy has to have been in force for a period of 3 years, at least. The surrender value provided by LIC is essentially 30% of the premiums that have been paid so far.

Should I surrender my Jeevan Saral policy after 10 years?

Premiums paid are exempted from income tax-free for Jeevan Saral policy under Sec 80 C. The maturity proceeds of Jeevan Saral are also exempted from tax under Section 10 (10D). … This policy can only be surrendered after the completion of 3 years.

How can I withdraw old LIC policy?

Documents Required for Maturity Claim DischargeOriginal LIC Policy Document.Identity Proof.Age Proof (if not submitted previously)Cancelled Cheque leaf or a copy of the Policy holder’s Bank Passbook.NEFT Mandate Form (to transfer the maturity proceeds directly to the policyholder’s account)More items…•

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.

How can I cancel my LIC policy and get money back?

Documents Required for Surrender LIC PolicyOriginal Policy Bond.Download LIC Policy Surrender Form No. … Bank cancelled cheque leaf (your name should be printed on cheque) or bank passbook photocopy. … Fill LIC’s NEFT Form, if you are not using the above said Surrender Form and submit the same.More items…•

What is special surrender value?

Special surrender value = (Original sum assured * (No. of premiums paid/No. of premiums payable) + total bonus received) * surrender value factor. When one stops paying premiums after a certain period, the policy continues but with lower sum assured. This sum assured is called the paid up value.

What is lapsed without surrender value?

A life insurance policy will lapse when premium payments are missed and cash surrender value is exhausted on a life insurance policy. The term lapse refers to a “lapse in coverage”, meaning the life insurance contract will no longer pay a death benefit or provide any insurance coverage for the insured person.

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.

Can I get my money back from LIC?

The LIC new money back policy can be surrendered only after it accrues cash value after payment of 3 years of premiums. If policyholders stop paying the premium, the policy ceases to exist. Nevertheless, if premiums have been paid for three years, a paid up value is accrued for a reduced sum assured.

Is there any LIC policy for 5 years?

LIC’s Jeevan Aastha is a single premium assurance plan which offers guaranteed benefits on death and maturity. The Plan is close ended and would be available for a maximum period of 45 days from the date of its launch i.e. 08.12….2.Premium rates.Age at entryPolicy Term 5 yearsPolicy Term 10 years50180.85175.903 more rows

Can we surrender LIC 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. … Surrender value is payable only after three full years premiums are paid to LIC.

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.