Life Insurance policies usually are long term investments which provide greater value on life insurance coverage value and moderate returns on the investment . Even some of the investment and money back related policies range over a maturity period of 10 to 30 years which is a long term relationship.
Following any uncertainties in insurer's life , there may be a need to terminate the policy in between before the maturity date . Depending on the policy terms and conditions , the return value in such cases may be less than the actual benefit of maturity date.
Below is a procedure followed to surrender a LIC India policy before the maturity date . This takes less than 1 hour if all required details are prepared before hand. It usually requires the insurer to visit the branch office from where the policy was purchased and submit the request in person.
- In the Policy document , the branch office which issued the LIC policy will be printed. LIC as per their policies directs the insurer to visit only this branch and request is not served in other branches as of now
- On visiting the office , insurer has to visit the "Surrender Policy" department where the executive enquires about the reason for surrender. Once the insurer confirms - executive hands over 2 forms in which details have to be filled by the insurer attaching the KYC documents
- Form1 - Surrender / Discharge request form . In this form details about the Insurer , Policy number , Reason for Surrender , Consent , Address and contact details are collected with Signature
- Form 2 - LIC Form no. 5074/PS in which policy details , the Bank information such as Account number , IFSC code to which the policy amount has to be credited , If Nominee is applying then nominee KYC details are collected
- Along with above 2 filled forms - for KYC a copy of insurer Aadhaar card for identity and address proof , a copy of PAN card , a copy of Bank pass book front page or a cancelled bank cheque in which the insurer name , account number and IFSC code is printed have to be attached. Nominees may carry their KYC details also as above along with the insurer details.
- LIC Executive on validating the details , will share the surrender value amount details and register a request
- Upon registration a unique reference number is received as SMS to the contact number shared
- Upon accepting the request , further communication is sent over SMS on the progress and within less than 10 working days , surrender value is credited to insurer provided bank account.
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