How to Close LIC Jeevan Labh Policy?

If you simply stop paying premiums without surrendering, you will not be eligible for any benefits. Let’s find out how you can do so for LIC’s Jeevan Labh Insurance Policy: 

About LIC Jeevan Labh 736

LIC Jeevan Labh 736 policy is an endowment-based life cover . This limited premium-payment policy secures the financial future of your loved ones in case of your unfortunate demise. The plan by LIC of India also supports your liquidity needs with its loan facility. Key features of this plan are:

• The plan entitles the surviving policyholder to receive a lump sum amount when the policy matures. 

• The plan offers the sum assured on death along with additional bonuses. 

•  You can avail of extra protection using riders against accidental death and disability. 

• The loan facility is available on paying two full years' premiums. 

• Policyholders can opt out of LIC Jeevan Labh at any point during the policy period and still receive benefits, subject to the acquired surrender value. 

Ways to Close LIC’s Jeevan Labh Policy

Before you decide to close LIC’s Jeevan Labh policy, you should be mindful of your savings and the number of dependents. Life insurance is crucial to secure your family’s future during the times you are not around. However, if you have found better investment and savings avenues or if you want to terminate your insurance cover for some other reason, you can do it without significant consequences. Here’s how; You can close your LIC Jeevan Labh policy in the following ways:

1. Closing Account by Not Paying Future Premiums

   If you stop paying due premiums to keep your policy in force, the policy lapses. There is, however, a grace period of 15-30 days during which you can start making the payment again to continue your policy. You will also get a chance to revive the policy in the revival period of 5 years; however, that is available on request. If you still decide to make no further payments, the policy shall be terminated, and no benefits shall be payable. Please note that the insurer is not liable to pay any refund or death/maturity amount under such circumstances.

2. Closing Account During the Free-Look Period

   Jeevan Labh LIC policy comes with a free-look period of 30 days, during which a policyholder can read through the terms and conditions of the policy. If he/she finds him/herself dissatisfied with any aspect of the policy, they can return this policy. LIC will refund the premium amount paid on accepting the request, subject to certain prorated risk deductions.

3. Surrendering LIC Jeevan Labh 

   LIC Jeevan Labh 736 allows policyholders to surrender their life insurance coverage at any point during the policy tenure. The only condition to surrendering a policy is that 1 full year's premiums must be duly paid. To surrender a policy, one is required to submit the following documents:

   • Discharge form

   • Original policy document

   • NEFT mandate

   • Proof of age

4. Conversion to a Paid-Up Policy

   With LIC’s Jeevan Labh, if one full years' premiums have been paid and stopped any subsequent premium payments, it converts to a paid-up policy. Under paid-up policies, the policyholder is entitled to death and maturity benefits, however the amount is lower than the original sum assured at policy inception. 

   Of the four ways discussed above, surrendering the policy or converting it to a paid-up policy offers the maximum benefits. Therefore, you might want to continue to pay the premiums for a while longer and receive some amount instead of losing all benefits.

How to Close Your LIC Jeevan Labh Policy?

You can initiate the closure of your Jeevan Labh policy online or offline. In case of offline cancellation, you can visit the branch and submit a written request or call on their helpline number. If you choose to do it online, you can visit LIC’s website and using LIC e-services proceed as detailed below.

• Step 1: Go to the official LIC of India website and login to your account using your credentials. 

• Step 2: Download the Surrender form from the website and carefully fill out the application form with all the details and policy information. 

• Step 3: Upload the completed application form and required documents such as identification proof, address proof, policy bond, surrender application with a reason, NEFT mandate form and a cancelled cheque. 

• Step 4: You can track the status of your surrender form through thes LIC portal. 

• Step 5: Once the surrender processing is complete, the surrender amount will be credited to your bank account (registered) within 7 days to 10 days. 

Important Considerations When Closing LIC Jeevan Labh Policy

• Free Look Period: If you are not satisfied with the plan within 30 days of receiving the plan documents, you have the option to cancel it and get a refund of all the premium amounts paid. 

• Policy Terms: Review all the terms and conditions of policy, mainly regarding surrender amounts and penalties for terminating plans early. 

• Surrender Value Calculator: Use online calculators such as Policybazaar’s LIC Jeevan Labh Surrender Value Calculator to calculate the surrender amount. 

Summing Up!

We have discussed four ways to close LIC Jeevan Labh. They include halting future premium payments, canceling during the free-look period, converting the policy into a paid-up policy, and surrendering the policy to close your LIC Jeevan Labh cover. The closing of your LIC Jeevan Labh 736 Plan should depend on how long you have had your policy. You can proceed with the necessary steps.

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