Consider these options instead of surrendering your policy
Revival drives being done by LIC of India
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.
Process to surrender a LIC policy
Check surrender value of a policy
Surrender form download
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.
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.
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 that you wish to surrender, do comment belwo and we will let you know the surrender value and the process to surrender the policy.