Return Policy
An LIC policy can be resigned after three years of premium payments, it has surrender value approximately 30 percentage of the total sum paid.
This figure does not include the first year or those bases with accidental benefits inclusions. The surrender value depends with the total premiums paid up to that time before the policy holder decides to surrender after less incidental benefits coverage premiums and first-year premiums.
The surrender value does not take into consideration extra charges for bonus, taxes, or other riders. In the event that the policy expires before the expiry of the grace period, the grace period has to be added to the policy then the policyholder has two years to renew the policy.
The option for payment is available through Debit cards, Net banking, wallets, UPI with additional convenience charge for Credit Card payments.
The policyholder can also pay with a NACH mode where the policyholder fills a mandate with the bank, and the policyholder’s account will be debited every time the premium is due.
Surrender value depends on surrender processing time under the LICpolicy.
There are two kinds of surrenders that are possible:
Value of Guaranteed Surrender (GSV)
Policyholder can opt for termination of coverage under the guaranteed surrender value after the period of three years with a proviso that he pays minimum three years’ premium amount. The surrender value is roughly ten per cent of the premiums paid less any unintentional benefit riders and first year premiums, adjusted by the surrender date of the policy.
Particular Value of Surrender
If you have paid premiums for 3 or more but less than 4 years then for such policies, you can claim up to 80 % of the guaranteed maturity amount. This is often higher than the amount promised when one is willing to give it up easily or surrender it. The special surrender value for LIC policies enables you to receive 90 percent of the assured maturity amount if you pay premiums for four and less than five years and 100 percent if you pay premiums for more than five years.
LIC Money Back Policy
This is a refund and with bonus plan which calls for 15 years premium payment for a 20 years Policy. The life assured is availed a survival benefit equivalent to twenty percent of the Basic Sum Assured after the fifth, tenth, as well as the fifteenth years.
On the policy term maturity, bonuses accrued for the entire period plus the rest of Basic Sum Assured of 40% are tendered. In theend,if the life insured dies,the nominees are paid Sum Assured plus any vested bonuses as a death benefit.
It has a 30 days grace period for premium payment but can be restored effective from the first missed premium paying date two years from then.
LIC Money Back Policy Benefits: 20 Years
LIC money back policy comes with certain advantages such as 20 % survival benefit in case the policyholder survives till the time the policy is due to mature, Maturity benefit is paid at the end of the term of the money back policy and the policyholder can take loan against the policy.
The policy allows up to 90 percent or eightieth of total premium amounts as at the time of death. Should the life insured die before the term of the policy, the nominee is paid the Sum Assured on Death withadditions.
Increased protection can also in the Accidental Death and Disability Rider privilege that gives the assured amount in the event of unintentional death and an amount same to that of the guaranteed accident advantage sum for ten days in the event of absolute disablement.
There are two types of bonuses offered under the plan: the Simple Reversionary Bonus, determined using the Sum Assured per thousand at the end of each policy year, paying the policyholder an additional amount which increases the Sum Assured for each completed policy year, the Final Addition Bonus that imparts an additional benefit to the policy holder on death or maturity claims and is payable after the policy has earned a minimum number of years.
