Can I Surrender My Lapsed LIC Policy?

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 close my LIC policy before maturity?

It is the option to exit from life insurance product before maturity wherein policyholder will get the amount which is called as Surrender Value. A regular premium policy will be eligible for surrendering after the policyholder has paid the premiums continuously for 3 years.

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.

How can I refund my lapsed LIC policy?

The policy can be revived only once during the policy term. The lapsed policy can only be revived if it has not expired for a period of fewer than 6 months or more than 3 years from the date of revival. Under the special revival scheme, the policyholder has to give a written request for reviving the policy.

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.

What is the meaning of surrender value?

Definition: It is the amount the policyholder will get from the life insurance company if he decides to exit the policy before maturity. A regular premium policy acquires surrender value after the policyholder has paid the premiums continuously for three years. …

How is Jeevan Anand surrender value calculated?

Surrender value of Jeevan Anand (815) Plan is sum of percentage of total paid premiums excluding Rider Premium & Taxes (Guaranteed Surrender Value) and percentage of accumulated bonus at the time of surrender.

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.

What if LIC premium is not paid?

When you do not pay the premium for your LIC policy on time or within its grace period, it lapses. However, if you want to revive this policy, then you have to do it within five years from the first unpaid premium’s date. … The revival must be performed within three years of the policy lapse.

What happens when a LIC policy lapses?

A Lapsed Policy If the insured does not pay the premium amount even during the grace period, the life insurance policy lapses. In this state, the insured will no longer enjoy coverage from the policy, and will also not be eligible for any death benefit.

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.

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