Surrender Value of Policy

How to surrender LIC policy?

To surrender a LIC policy, the policyholder has to  take the following steps –

• The policyholder should visit the nearest branch of LIC and avail a surrender discharge form OR You can download it here from the link  given below . The Surrender Discharge Form is called Form 5074.
• The form should be filled and submitted with the relevant documents.
• Once the form and the documents are submitted, the company would process the surrender of the policy.
• Once the surrender request is accepted, the surrender value would be credited to the bank account of the policyholder. 

The following documents would be required if the policyholder wants to surrender the policy – 

• Surrender discharge form with revenue stamp  signed by policyholder. You can download surrender form given at the end.
• Application for surrendering the policy to be mentioned the reason for surrendering the policy
• NEFT Mandate form to allow the surrender value to be credited to the policyholder’s bank account
• Copy of PAN Card
• The original policy bond
• A cancelled cheque with your name on cheque or Verified xerox copy of Bank Passbook  with the bank account details of the policyholder 

What happens when the policy is surrendered?

When the LIC policy is surrendered, the following things happen –

• The coverage stops immediately
• The surrender value is paid to the policyholder
• The policy cannot be revived in future
• All benefits of the policy cease to apply

Moreover, the surrender value paid would be very low compared to the total premiums paid by the policyholder.

Please Note :-

1)Separate surrender form is to be submitted for every policy you want to surrender and also all requirements to be attached separately with each surrender form.

2) There is no need of signature of your nominee in the form.

Download Surrender Value Form No.5074

Download Questionaire to be submitted with surrender application

Download NEFT Form

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