how to surrender a policy

How to surrender LIC policy

Why surrender LIC policy. Instead you can…


Skip a premium and later revive your policy

Policy surrender from LIC is very simple, requires no approvals and it is very quick. LIC does revival drives from time to time wherein the late fee and other charges are reduced hugely and the policy holder can get the policy revived easily at a very discounted price.

Get in touch with you LIC agent and he will tell you if there are any revival drives going on currently or are expected in near future.

Usually the revival drives are conducted by LIC twice a year once around Jan – Mar and then again around Oct-Dec every year. To get exact dates, consult your agent.

Take loan on the policy

Almost all policies of LIC come with built in feature of taking loan against the policy. Check your loan eligibility on the policy and if required you can take a loan and avoid the surrender of the policy.

The loan process is instant and without any paper work.

Still want to surrender the policy?

The process to surrender the LIC policy is quite simple and requires very less documentation. There are no approvals required. A policyholder just need to deposit the LIC surrender form 5074 along with his/her document proofs.

Process to surrender a LIC policy

  1. Check surrender value of a policy: Visit your branch or call your agent to check LIC surrender value
  2. Surrender form download: download the form here. LIC Surrender Form 5074-3510
  3. Documents required: Form no. 5074 (LIC Surrender form download link below), id proof and bank details would be required to be submitted
  4. LIC surrender Form: hand over the documents to your agent or visit the branch
  5. Time taken for surrender: Once the documents are submitted with LIC office it takes around 2-3 business days to get the policy surrendered and the money will automatically be deposited in your bank.
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lic surrender form

Frequently asked questions regarding surrender

What is surrender of policy?

When a policy holder does not wish to continue to run the policy, they have an option of surrendering the policy. Once the policy is surrendered the life cover ceases to exist. The surrender value of the policy is paid to the policy older which can be more or less than the premiums he/she has paid depending on the policy, term, etc.

Why is the surrender value so less?

A life insurance policy is a long term contract that the policyholder and the insurance company agree to. The insurance company have to give the claim and also the returns to the policy holder which they can only do if they get the premiums in time and invest the premium amount into some business.

If the policyholders withdraws the policy and does not pay the future premiums the insurance company is at a major loss in the agreement. Still instead of forfeiting the whole amount LIC tries hard to give out the maximum surrender value to the customer.

Does LIC allow surrender in all policies?

Yes, each and every policy can be surrendered. The surrender value of policies varies from policy to policy.


LIC of India has the BEST surrender values among all life insurance companies operating in India. This is again one reason the poly-holders prefer LIC over any other private insurer. 

If you have a policy and you are in Gurgaon, do comment below and we will let you know the surrender value and the process to surrender the policy.


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