How to find surrender value of LIC?

How to Find Surrender Value of LIC

If you have a Life Insurance Corporation of India (LIC) policy and are considering surrendering it, you may be wondering how to find the surrender value. The surrender value is the amount you are entitled to receive if you choose to terminate your policy before its maturity date. Here’s a step-by-step guide on how to find the surrender value of your LIC policy:

1. Check the policy documents:

The first step is to carefully review your policy documents. The surrender value details are usually mentioned in the policy document or in the terms and conditions provided by LIC.

2. Contact the LIC branch:

If you cannot find the surrender value information in the policy documents, the next step is to contact the nearest LIC branch. Provide them with your policy details, and they will assist you in calculating the surrender value of your policy.

3. Visit LIC’s official website:

LIC has an official website where policyholders can access various services. Visit the website and navigate to the policy surrender section. Enter your policy details, and you will be able to check the surrender value.

4. Contact LIC’s customer care:

If you prefer a more personal approach, you can contact LIC’s customer care helpline. Provide them with your policy details, and they will guide you on how to find the surrender value.

5. Use the SMS service:

LIC offers an SMS service that allows policyholders to access policy-related information, including the surrender value. Send an SMS with the required details to the designated LIC phone number, and you will receive the surrender value information.

6. Consider consulting a financial advisor:

If navigating the process seems overwhelming or if you are unsure about the accuracy of your calculations, it may be beneficial to consult a financial advisor for assistance.

Frequently Asked Questions (FAQs)

1. How often does the surrender value change?

The surrender value of an LIC policy can change over time based on several factors such as the premium paid, policy duration, and other policy-specific conditions.

2. Can I surrender my policy at any time?

Yes, you can surrender your LIC policy at any time before its maturity date. However, surrendering early may result in a lower surrender value compared to surrendering later in the policy term.

3. What if I cannot find my policy documents?

If you have misplaced your policy documents, it is advisable to contact the nearest LIC branch or customer care helpline for assistance in finding the surrender value.

4. Can I reinstate my policy after surrendering it?

Once a policy is surrendered, reinstating it is generally not possible. However, it is recommended to clarify this with LIC’s customer care in case there are any specific provisions or options available.

5. Will surrendering a policy affect my credit score?

Surrendering a life insurance policy does not impact your credit score. Credit scores are based on credit-related activities such as loan repayments, credit card usage, and debt management.

6. What is the difference between the surrender value and the maturity value?

The surrender value is the amount you receive if you terminate your policy prematurely, whereas the maturity value is the amount you receive upon the completion of the policy term.

7. Are there any charges deducted from the surrender value?

Yes, LIC deducts various charges from the surrender value, including surrender charges, service tax, and unpaid premiums, if any.

8. How long does it take to receive the surrender value?

Once the surrender value is calculated and the necessary paperwork is completed, it typically takes a few weeks for LIC to process the surrender and disburse the surrender value.

9. Can I surrender only a part of my policy?

In most cases, you cannot surrender only a part of your LIC policy. Surrendering typically involves terminating the entire policy.

10. Can I surrender a policy that is in a lapsed state?

Yes, it is possible to surrender a policy that is in a lapsed state. However, the surrender value in such cases may be significantly lower due to non-payment of premiums.

11. Is the surrender value taxable?

The surrender value may be subject to taxation depending on the applicable tax laws in your country. It is advisable to consult a tax professional for accurate information regarding the taxation of surrender value.

12. Is the surrender value the same for all policies?

No, the surrender value varies between different policies and depends on factors such as the type of policy, premium paid, the policy’s duration, and other specific conditions mentioned in the policy terms and conditions.

Finding the surrender value of your LIC policy is crucial if you are considering surrendering it. By following the steps mentioned above and consulting the official sources, you can accurately determine the surrender value and make an informed decision based on your financial needs and circumstances.

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