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A policyholder might want to close their policy before its maturity for a variety of reasons. For closing an ongoing policy, changing needs, unplanned events and access to a better policy are considered valid reasons.
The Life Insurance Corporation (LIC) is an Indian multinational Central Public sector life insurance company. It allows its customers to cancel their policy by surrendering it. In this blog post, we’ll guide you on how to close LIC policy online.
Individuals usually purchase a policy with a certain goal in their mind. However, during a financial crisis, health emergency, or a special occasion, one may need to reassess their priorities. Therefore, they may choose to surrender their existing LIC policy.
To put it simply, LIC policy surrender takes place when a policyholder chooses to withdraw or discontinue their ongoing LIC policy before waiting for it to reach maturity period. When LIC withdrawal takes place, all the benefits, coverages and perks of the surrendered LIC policy become void.
In tough times, you can consider LIC policy surrender if you run out of money. However, there may be a restriction on the minimum tenure before which surrender can take place. This may vary from one insurer and policy to another.
In tough times, you may consider surrendering your policy if you run out of money. However, you must keep in mind that there may be a minimum tenure requirement before you can surrender the policy. This requirement can vary depending on the insurer and the specific policy.
Surrender value of LIC policy refers to the amount of money a policyholder receives upon surrender of the LIC policy before the policy’s maturity date. Generally, the surrender value provided by LIC is 30% of the premiums that have been paid so far.
However, certain factors are taken into account to calculate the exact surrender value LIC such as: total premiums paid, bonuses accrued, duration of policy and deductions for surrender charges.
The following documents are required for surrender of LIC policy:
Bank account Details
PAN card
Cancelled cheque
Original Copy of the Policy Bond
Printout of LIC Policy Surrender Form No. 5074
Aadhaar Card
Wondering how to close LIC policy online? Follow these steps:
Step 1: Visit LIC’s official website.
Step 2: Sign in using your credentials.
Step 3: Download the Surrender Discharge Voucher (LIC Form No. 5074).
Step 4: Fill in all the required details in the form and submit it along with all the required documents to the LIC branch.
Step 5: If you do not want to visit the LIC branch, you can courier your form and documents to the LIC Head Office on the following address: Yogakshema Building, Jeevan Bima Marg, P.O. Box No- 19953, Mumbai-400021.
Step 5: Upon acceptance of the form, the surrender process shall be initiated.
Step 6: Finally, the surrender value will be deposited in your bank account.
To close your LIC policy, knowing the policy number is extremely important. However, in some cases, individuals may forget their LIC policy number. The good news is that the LIC policy number can be looked up online on LIC portal by using login details.
Just follow these simple steps:
Step 1: Visit the official website of LIC.
Step 2: Click on the ‘login’ option.
Step 3: Select the ‘customer portal’ using the drop-down menu.
Step 4: Now, login using your credentials.
Step 5: You can see your LIC policy number, along with other policy details, on the webpage.
If you do not remember your User ID and password, you can find LIC policy number using your registered mobile number and date of birth.
Just follow the steps below:
Step 1: On the LIC customer login page, choose log in with OTP option.
Step 2: Now, enter your mobile number and date of birth.
Step 3: Thereafter, you will receive the OTP on your mobile number.
Step 4: Type the OTP to log onto the portal.
Step 5: Now, you’ll be able to see your policy details, including policy number.
During periods of financial hardships, many individuals surrender their policies to meet their financial needs. To close an LIC policy online, you must download the surrender form of LIC known as LIC Form No. 5074. This form is also called the Surrender Discharge Voucher. Once you surrender your LIC policy, you lose access to all its benefits. The Life Insurance Corporation of India will credit the surrender value to your bank account directly.
Hey there, I'm Dushyant Sharma. With the extensive knowledge I've gained in past 8 years, I have been creating content on various subjects such as banking, insurance, telecom, and all the important registration and licensing processes for various companies. I'm here to help everyone with my expertise in these areas through my articles.
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