Hi sir,
I like to cancle my lic jeevan Labh policy, i have paid three premiums,
reason to cancle my policy i am not able to pay premiums of my budget problem.
So please tell me the details that how to cancle the policy. If any returns will be paid to me.
1 Answers
Hi,
You have two options now ;
You can Surrender the policy and get the surrender value amount. (or)
You can discontinue it and make it a PAID-UP one.
How Paid-up works?
For example: If you have an endowment policy with a cover of Rs 10 Lakh for 20 years and convert it into a paid up policy after 5 years then the reduced sum assured will be Rs 2.5 Lakh.
So, you will have a life cover for Rs 2.5 Lakh for the next 15 years. There is no need to pay any premiums during this tenure. The future bonuses will not be accrued. The reduced sum assured along with the accrued bonuses (if any for 5 years) will be paid only on maturity or on death of the insured. Kindly note that if you surrender, you get the amount now, which can be re-invested.
However, if they are made as PAID-UP, you get the amount at the end of policy term (on maturity). So, you need to give more importance to ‘Time value of money’. May I know if you have adequate life cover? Do you have dependents and/or have any financial liabilities? Kindly read : https://www.relakhs.com/how-to-get-rid-off-bad-life-insurance/ https://www.relakhs.com/lic-jeevan-labh-plan-table-no-836-features-review-returns-calculation/ https://www.relakhs.com/insurance-importance-life-health-accident-covers/
For example: If you have an endowment policy with a cover of Rs 10 Lakh for 20 years and convert it into a paid up policy after 5 years then the reduced sum assured will be Rs 2.5 Lakh.
So, you will have a life cover for Rs 2.5 Lakh for the next 15 years. There is no need to pay any premiums during this tenure. The future bonuses will not be accrued. The reduced sum assured along with the accrued bonuses (if any for 5 years) will be paid only on maturity or on death of the insured. Kindly note that if you surrender, you get the amount now, which can be re-invested.
However, if they are made as PAID-UP, you get the amount at the end of policy term (on maturity). So, you need to give more importance to ‘Time value of money’. May I know if you have adequate life cover? Do you have dependents and/or have any financial liabilities? Kindly read : https://www.relakhs.com/how-to-get-rid-off-bad-life-insurance/ https://www.relakhs.com/lic-jeevan-labh-plan-table-no-836-features-review-returns-calculation/ https://www.relakhs.com/insurance-importance-life-health-accident-covers/
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