How to Check LIC Policy Surrender Status Online?

Understanding LIC Policy Surrender

Surrendering an LIC policy means the policyholder decides to cancel their policy before the end of the policy term. LIC of India allows its users to surrender their LIC policies during the policy term under various conditions. People can also surrender the policy if it seems unaffordable or if they’re unhappy with the terms or benefits of the policy.

However, you can only surrender your life insurance policy after paying premiums for at least one year. When you surrender your policy, LIC will give you a surrender value, a portion of the money you’ve paid in, and your coverage will end. The guaranteed surrender value is only acquired by the policy once premium payments for two whole years have been made, otherwise special surrender value is payable.

Generally, surrendering the LIC policy isn’t recommended because the surrender value is usually lower than you paid. Also, after the payment of surrender value, the policy terminates with no further benefits.

If surrendering can not be avoided due to some reason, then instead of surrendering, you might consider converting your policy to a paid-up status. This way, you avoid penalties and retain some benefits without continuing premium payments.

How To Check LIC Policy Surrender Status Online By Policy Number?

Through the LIC Customer Portal

Follow the below-mentioned steps for LIC surrender status check online:

Step 1: Visit the official website of the LIC

Step 2: Register as a new user, and if you are already registered, then click ‘login here’

Step 3: Login to the LIC portal and select ‘Enroll Policies’ displayed on the left side of the page

Step 4: Click on ‘Click to enroll New Policies’ and hit on ‘Proceed’

Step 5: Then, enter the required details, such as the policy number, premium amount, and policyholder’s name, and click ‘enroll your policy.’

Step 6: After enrolling in the policy, click ‘view enrolled policy’

Step 7: Select ‘Click for details’ from the policy lists under the column ‘Loan and Bonus’

Along with the LIC surrender status of your policy, its loan eligibility and the surrender value can be found here.

Note—The suitable amount will be deducted from the surrender value of your life insurance policy if you have taken a loan against your LIC insurance policy.

Through the MyLIC App

• Download the MyLIC app from the Google Play Store or Apple App Store.

• Log in with your policy number, date of birth and mobile number.

• Go to Policies or Policy Status and choose your policy.

• Check your surrender value and request status.

Alternative Ways to Check LIC Surrender Status

• Helpline: Call the LIC customer care numbers at 022-68276827 or toll-free at 1800-33-4433.

• WhatsApp: Send "Hi" to the official LIC WhatsApp help number at 8976862090.

• Branch Visit: If online updates are delayed, contact your home branch or servicing agent directly for payment transfer updates.

LIC Surrender Online Login: How to Surrender Your Policy

Online

Following are the steps for surrendering your LIC policy online:

Step 1: Visit the official LIC website.

Step 2: Locate and download the “Surrender Discharge Voucher” (Form No. 5074) from the LIC website.

Step 3: Fill in your details like policy number, personal details, and the reason for surrender in the form very carefully.

Step 4: Upload your duly filled form along with its supporting documents like original policy bond, photo ID, Aadhaar or PAN card, valid address proof, bank account details and a cancelled cheque.

After submitting the form and documents, LIC will verify and process your request. You’ll be notified once the surrender request is successfully accepted. The applicable surrender value will be deposited into your registered bank account a few days after completion. You can check the LIC policy surrender payment status as specified above.

Offline

You can also apply for surrendering LIC policy offline by visiting any of the branches. Follow the below steps to surrender the LIC policy offline:

• Visit the nearest branch of LIC, and try to visit the branch from where the policy is purchased.

• You can ask questions regarding the surrendering policy and its returns at the LIC office or you can even download the form from the LIC website.

• Submit the necessary documents to surrender your LIC policy. Documents can be your ID proofs, Aadhaar or PAN, cancelled cheque, etc.

• After completing all the formalities, the cash will be transferred to your registered bank account within 7-10 working days.

• Contact the branch to know your LIC policy surrender payment status easily.

What Documents are Required to Surrender LIC Policy Online?

The following are the documents required if you want to cancel LIC policy online through surrendering:

• The original bond of the policy i.e. policy documents

• Form No. 5074 of LIC Policy Surrender

• Information related to the policyholder’s registered bank account

• ID proofs include PAN card, Aadhaar, driving license, and voter ID.

• Cancelled cheque from the policyholder’s bank

How to Calculate LIC Surrender Value?

Surrender value is the portion of money or amount paid to the policyholder by the insurance company at the time of surrender of policy before the maturity date. In other words, it means closing the policy before the maturity date. Surrender value is mostly payable on insurance plans having a savings element attached to it. The calculation of the surrender value is based on the premiums paid by the life assured until the surrender date. If you want to know how to find the surrender value of LIC policy, you must know about its types.

There are two types of surrender values:

Guaranteed Surrender Value:

The Guaranteed Surrender Value is the amount that is payable after at least 2 years of policy anniversary and payment of all due premiums until the date of surrender. This amount is calculated by multiplying the total premiums paid with the Guaranteed Surrender Value Factors, but this percentage varies with passing policy term as per different policy types.
The Guaranteed Surrender Value is 30%-90% of the policyholder's premiums, excluding the premiums from the first policy year and any rider premiums.
For Example
Saloni paid Rs.30,000 total premiums till the date of surrender, that is, Rs.10,000 X 3 in the starting 3 years of the policy for a SA (sum assured) of Rs.3 Lakh. In this, the minimum value for surrender that Saloni will receive is 30 percent of 20,000, which becomes Rs.6000.

Special Surrender Value:

The special surrender value for LIC policies typically exceeds the guaranteed surrender value. If you have paid premiums for over 3 years but less than 4, you may receive up to 80% of the assured maturity sum. For premiums paid between 4 and 5 years, you can get up to 90% of the maturity sum assured. If you have paid premiums for more than 5 years, you can receive up to 100% of the assured maturity sum. The formula to calculate SSV would be the sum of paid-up value and accrued bonuses multiplied by SSV factor.
Upon policy discontinuation, a life assured receives a special surrender value, computed as the sum of the total bonus and the paid-up value multiplied by the surrender value factor.
For Example
Saloni is paying an annual premium of Rs.15,000 for a sum assured of Rs.3 lakh with a policy term of 20 years. But she stops after 3 years. So paid up value is Rs.60,000, accrued bonuses be Rs.30,000 and the SSV factor be 30%. So the Special Surrender Value would be (60,000+30,000) x 30% = Rs.27,000.

LIC Withdrawal Online by Policy Number

If you want money from your LIC policy using your policy number, you have three options:

• Surrender: close the policy and get the surrender value.

• Partial withdrawal: available in some LIC ULIPs after the lock-in period.

• Policy loan: borrow against your policy without closing it. Your cover continues.

Log in to the LIC portal or MyLIC app with your policy number to see which options apply to your policy.

After Surrendering an LIC Policy, How Many Days Will It Take?

Submit your required to LIC within the stipulated time given by them because they will need about 7 to 10 working days to pay your surrender value. The payout goes right into your bank account. Delays may occur if the documentation isn’t complete or if documents are missing, or if they don't match, so make sure to carefully arrange all the necessary documents in due time.

Is Surrendering LIC Policy Worth It?

Yes, surrendering a policy can be worth it, if you are not satisfied with the policy’s terms and conditions or are unable to continue premium payments through an online mode. You can also determine the status of the LIC policy surrender online by visiting LIC’s official website. You can only surrender the policy after one year. Instead of surrendering the LIC policy, it is recommended that the policy be made a paid-up one. The paid-up policy provides a maturity benefit and a death benefit during the policy term as per the paid-up policy rules. You can consider Term Insurance plans from LIC, for more affordable options that provide pure protection for your family’s financial security.

Note: Check all the best term insurance plans in India.

Note: You should also check the benefits of term life insurance if you are planning to purchase the term insurance plan.

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