Cancellation of LIC policy
Hi, I want to know how much money (approximately) I would get if I cancel my LIC Jeevan Anand policy. I have paid 5 premiums of Rs.25000 each year in January. Until now, the accumulated vested bonus is Rs. 90,000 for my policy. Someone who experienced the LIC cancellation process could reply, please? more
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I observed that LIC is sending reminders for payment of premium by Post, even though I have filled in ECS form for direct deduction of premium from bank. The bank is deducting the payment timely, however LIC has never sent any receipt. LIC can send reminders by SMS to the registered mobile number/ by e-mail & should send the receipts required for Income tax deductions by Post/ e-mail. This is a short coming of Customer service. It shows lack of Consumer orientation & waste of Postage. more
Mar 19
Till one buys a policy, the Insurance company (LIC or otherwise), the insurance agent shall visit you over a dozen times (sometimes harassing you while trying to convince you). But once the policy is taken, the company and the representatives turn their backs to the policy holder and refused to cooperate even for small issues. more
Mar 19
Dear Rajan Ji, Paid up policy is only when all premiums have been paid. After paying for 3 years, if the premiums are stopped, automatically policy gets converted into reduced paid up and it continues until paid up value covers mortality charges. No further process is required for this. Reduced paid up policy can be converted back to full policy within 5 years after paying pending premiums with interest and good health report etc. more
Mar 10
CALCULATION OF SURRENDER VALUE OF THE POLICY: To get surrender value, you should pay premiums at least for 3 years. Add yearly bonus to your yearly paid premium. You say, your accumulated bonus for 5 years is Rs.90,000/-. for one year, Rs.90,000/5 = Rs. 18,000 Your yearly premium = Rs. 25,000 ---------------------------------------------- ----- Value of your policy per year Rs.43,000 When you surrender your policy, you lose full value of your policy for the first year. Form remaining four year's value, you get 30%, of your policy value, as follows: Rs.43,000 x 4 = Rs.1,72,000. 30% of this value + Rs.51,600 This will be the surrender value of your policy. CALCULATION OF PAID-UP VALUE OF THE POLICY: You can also opt for paid up value of your policy, in which full value, that is your premium and accrued bonus is available, on your death to your nominee or after the maturity date of the policy to yourself, whichever the event early. Paid up value of your policy is Rs.43,000/- x 5 = Rs. 2,15,000/- You, yourself will decide, which value is acceptable to you, surrender value or paid up value. Remember, as shown above, paid up has reduced sum of insurance if you die before due date of insurance policy, that is, Rs. 2,35,000/- is paid to your nominee. You may visit LIC's web site and get this information, if you don't have time to visit any of the LIC's branch office to know above calculations. Do Google search to get you LIC's web site. Shirish S. Shanbhag, Mumbai-400089. Dated: 09.03.2017. more
Mar 09
Instead of surrendering the LIC Policy where you may get less than 50% of your paid amount, consult with your agent or the concerned LIC Office to concert the policy as Paid up policy, where you need not pay the premium further and insurance will continue till term is over and at the end of the term you may get your amount with the bonus accrued. more
Mar 09
