When surrendering a life insurance policy with the Life Insurance Corporation (LIC) of India, the process requires specific documents to be submitted to the insurance company. These documents are crucial for verifying the policyholder’s identity, validating the surrender request, and facilitating the transfer of the surrender value. Utilizing the LIC Surrender Value Calculator can aid policyholders in estimating the surrender value before proceeding with the surrender. Here’s a comprehensive guide on the necessary documents and how to use the LIC Surrender Value Calculator.
The Surrender Discharge Form
The primary document required for surrendering a life insurance policy is the Surrender Discharge Form, also known as Form 5074. This official document, provided by the insurance company, signifies the policyholder’s intent to surrender the policy and initiates the surrender process.
NEFT Mandate Form
To ensure a seamless transfer of the surrender value to the policyholder’s bank account, an NEFT (National Electronic Funds Transfer) Mandate Form is essential. This form authorizes the insurance company to deposit the surrender value into the designated bank account, requiring accurate details for a smooth transaction.
Identification Documents
Verification of the policyholder’s identity mandates the submission of identification documents, typically including a copy of the policyholder’s PAN Card and Aadhaar Card (or other recognized IDs). These documents confirm the request is made by the rightful policyholder.
Original Policy Document
The original life insurance policy document serves as critical proof of the surrendered insurance contract and must be submitted to avoid delays in processing the surrender request.
Cancelled Cheque
A cancelled cheque from the policyholder’s bank account is necessary to provide accurate bank account details for the surrender value’s proper crediting. The cheque should match the account specified in the NEFT Mandate Form.
Postal Stamp of ₹1
A nominal postal stamp of ₹1 is required for compliance with legal formalities during the documentation process.
Reasons for Surrendering the Policy
While not always mandatory, some insurance companies may request a written statement explaining the reason for surrendering the policy. This information aids the insurance company in understanding the policyholder’s motivations and can address any concerns.
Submission to the Relevant Branch
To expedite the surrender process, all required documents should be submitted to the branch where the policy was originally issued. This ensures efficient processing by the correct office, as indicated on the original LIC policy document.
Using the LIC Surrender Value Calculator
Prior to surrendering a life insurance policy, using the LIC Surrender Value Calculator can help estimate the surrender value and understand the financial implications. Follow these steps to utilize the calculator:
Visit the LIC Website: Access the Surrender Value Calculator section on the official LIC website.
Enter Policy Details: Input essential information such as the policy number, sum assured, policy term, and premiums paid.
Calculate Surrender Value: The calculator will provide an estimated surrender value based on the policy’s terms and conditions.
Conclusion
Submitting the necessary documents for surrendering a life insurance policy with LIC is a meticulous process that ensures compliance and safeguards against fraudulent activities. Utilizing the LIC Surrender Value Calculator can aid policyholders in making informed decisions about their policies. By adhering to these guidelines and providing the required documents, policyholders can facilitate a smooth surrender process.
