How to Surrender an ICICI Prudential Life Insurance Policy Online?

What Does Policy Surrender Mean?

Policy surrender refers to terminating your life insurance policy before its maturity date in exchange for its cash value. The amount you receive upon surrender is the surrender value, which is calculated based on the premiums paid, the policy term, and the insurer's surrender charges.

Process to Surrender an ICICI Prudential Life Insurance Policy

If you want to surrender your ICICI Prudential Life Insurance policy, follow these simple steps:

• Collect Required Documents

  • Photo Identity Proof (Aadhaar, Voter ID, Passport, Driving License, etc.)

  • Cancelled Cheque (with your name pre-printed) or a recent bank statement/passbook showing your account details.

  • Original Policy Documents.

  • Duly filled Surrender Form.

• Visit the Nearest ICICI Prudential Branch
  Take the collected documents and visit any ICICI Prudential Life Insurance branch.

  • If you can't visit in person, send a third party with a signed authorization letter, KYC documents, and the surrender form.

  • For NRI Customers
    If you're an NRI, you need to provide proof of premium payment from your NRE bank account (like an NRE bank statement).

  • Submit Your Documents
    Hand over the documents to the branch officer for verification. The company will verify the documents to ensure everything is correct.

  • Surrender Value Calculation
    ICICI Prudential Life Insurance will calculate the surrender value based on the premiums and policy terms. The surrender value is the amount the policyholder will receive upon surrendering the policy, after accounting for any applicable charges.

  • Payout Processing
    Once the verification is complete, the surrender value will be transferred to your bank account within 2-3 working days.

Alternate Options Before Surrendering

If you face financial difficulties, surrendering your policy should be your last option. Here are some alternate options that allow you to retain your life cover and savings while meeting emergency financial needs:

• Loan Against Policy: If you hold a Savings or Endowment Policy, you can take a loan against your policy's surrender value.

• Partial Withdrawal: For ULIP policies, partial withdrawals are permitted after the 5-year lock-in period, providing liquidity without ending your life cover.

• Cover Continuation Option: Some ULIP policies offer a Cover Continuation Option, allowing you to keep the policy active without paying premiums for a specific period.

• 2-Year Extension: Many plans provide a 2-year extension feature, allowing you to keep the policy active and renew it within two years from your last premium due date.

These features help you sustain the policy until maturity, providing liquidity to meet emergency requirements without losing life cover.

Why Surrendering Should be the Last Option

Surrendering your policy should be considered only if there are no other financial solutions available. Here's why:

• Loss of Life Cover: Once the policy is surrendered, your life cover stops immediately, leaving your family unprotected. This is particularly crucial if your policy is a term insurance plan, as these policies are purely protection-based with no savings component.

• Loss of Long-Term Wealth Creation: Life insurance policies benefit from compounding, increasing your investment over time. Early surrender disrupts this growth.

• Loss of Tax Benefits: Renewal premiums offer tax benefits under Section 80C. By surrendering, you lose out on this advantage.

• Lower Payout Value: The surrender value is generally lower than the total premiums paid, due to surrender charges and loss of compounding.

• Higher Premiums for New Policies: If you decide to get a new policy later, it may cost more due to age and health conditions.

Wrapping It Up!

Surrendering your ICICI Prudential Life Insurance policy online involves some initial steps that can be done digitally, but final processing needs a branch visit. Make sure you evaluate all alternatives before finalizing your decision.

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