• By Aditya Pratap Singh
  • Thu, 14 Dec 2023 06:45 PM (IST)
  • Source:JND

Life Insurance Corporation of India (LIC) is the largest, oldest and most reliable insurance company in India. The insurance company provides a variety of life insurance and pension schemes and has the largest number of customers across the country.

Often, it happens when a customer buys a life insurance policy, but later, wants to surrender the policy given his inability to pay the insurance premium. In such a situation, LIC provides full support to its customers by offering them a policy surrender facility.

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Things to keep in mind before policy surrendering

If you or someone you know is not able to pay the premium further, then he or she can surrender the policy. There are some easy steps to follow to surrender.

  • Whenever you surrender any LIC policy, the value of the premium deposited reduces.
  • Before surrendering the policy, the customer will have to deposit the premium for at least 3 years.
  • If you surrender the policy in less than three years, you do not even get the premium amount.
  • If you surrender the premium then you will not get the amount of accidental claim.

How to surrender the LIC Policy

  • You have to visit the branch and have to fill out LIC Policy Surrender Form No 5074.
  • You have to attach the original document of the policy with the form.
  • Fill correct information of bank account number and IAFSC code.
  • Surrender can also be done through LIC's NEFT form.
  • Attach a copy of your identity card with the form.
  • Submit the form to the LIC branch.
  • This is how you can surrender your policy.
Note:  One should always think of surrendering an LIC policy in an extremely adverse condition. Because surrendering early costs the ultimate benefits of the insurance policy. And, You get less money than what you have deposited in the multiple premiums. 

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