Can I Surrender a Lapsed LIC Policy Online?

LIC (Life Insurance Corporation of India) policies are among the most popular forms of insurance in India. However, these policies often encounter lapsed statuses if not renewed within the specified premium deadlines. If you're wondering whether you can surrender a lapsed LIC policy online, or if you should keep it for the benefits, this guide will provide you with detailed insights.

Understanding Lapsed and Surrendered Policies

A lapsed LIC policy is one where the policyholder has not paid the premiums for a specified period. Typically, if the policy doesn't receive minimum payments for at least three years, it enters a lapsed status. Once five years have passed from the first unpaid premium due date, the policy becomes totally lapsed and cannot be revived. In such a case, no benefits will be payable under the policy.

Consequences of Surrendering a Lapsed Policy

Once a policy is lapsed, it can only be revived if the deadlock is resolved within five years. However, this option is often impossible due to the complexities and time constraints involved. If you still wish to continue with the policy, you must immediately start paying the premiums to bring the policy back to a paid-up status.

What Happens When a Policy is Paid-Up?

A policy that has run for at least three years without any missed payments is considered a paid-up policy. In this case, if the policyholder decides to end it, they will receive a certain amount designated as the surrender value. The surrendered amount is based on the reduced sum assured and the duration of the policy.

Deciding Whether to Surrender

Surrendering a policy, especially a lapsed one, isn't a decision to be taken lightly. It's crucial to carefully consider the financial implications. If you choose to surrender, the surrender value is the amount you will receive. This value is usually quite less than the premium paid and can vary based on factors such as the type of policy, the duration it was in force, and the prevailing market conditions.

Online Surrender Process for Lapsed Policies

While lapsed policies can be difficult to revive, a few insurance providers do offer an online process for surrendering policies. The detailed steps and procedures may vary, so it's essential to check with the insurance provider or visit their official website for specific instructions.

Steps to Surrender a Lapsed Policy Online:

Visit the insurer's official website and log in to your account. Navigate to the policy management section or customer service. Select the option to surrender the policy. Provide relevant details as required, including the policy number and your personal information. Review the surrender value and any other terms and conditions. Complete the transaction by paying any applicable surrender charges, if any.

Conclusion

Deciding whether to surrender a lapsed LIC policy online is a significant step that requires careful consideration. It's crucial to understand the implications and ensure you're making an informed decision. Always check with your insurer for the most up-to-date and specific information.

For more detailed queries or assistance, feel free to contact us or visit our official website for comprehensive information.