Table of Contents
- 1 Is it possible to reduce LIC premium?
- 2 How can I change my LIC premium?
- 3 Can I reduce my life insurance policy?
- 4 How can I change my LIC premium to monthly?
- 5 What is reduced paid-up status in LIC?
- 6 How do you continue reduced paid-up policy?
- 7 Can I pay advance premium on my LIC policies?
- 8 Can I Surrender my LIC policy after 4 years?
Non-forfeiture regulations: If the policy has run for atleast 3 full years and subsequent premiums have not been paid the policy shall not be void but the sum assured will be reduced to a sum which will bear the same ratio as to the number of premiums paid bear to the total number of premiums payable.
To change the premium payment mode of a LIC policy, you shall write a letter to the Manager of the LIC Branch where you have taken your policy. Currently, it is NOT possible to change your policy premium payment mode ONLINE.
Can I close my LIC policy before 3 years?
Under the guaranteed surrender value, the policyholder can surrender their policy only after the completion of 3 years which means that the premium has to be paid for a minimum period of 3 years. So, the later the policy surrendered, the higher will be the LIC surrender value.
How can I revive my reduced LIC policy online?
The revival of lapsed LIC policy is not an extensive process. Policyholders can quickly revive the policy online by visiting the official website of LIC or visit the nearest branch of the company. Naval Goel is the CEO & founder of PolicyX.com.
Can I reduce my life insurance policy?
Reduce the policy’s face amount. Most life insurance companies will allow you to lower the amount of your death benefit in exchange for a lower premium. If you lower the face amount of a permanent life insurance policy enough, your carrier may consider you “paid up” and allow you to stop paying premiums entirely.
When the policyholder wants to decrease the frequency of premium installments in a policy year (from monthly to yearly, from half yearly to yearly or from monthly to half yearly etc). It will be done by policy holder by writing a letter to LIC OF INDIA and NO fee will be paid in this case.
How do you surrender reduced paid-up LIC policy?
Surrender – you can surrender the policy if at least 3 years’ premium has been paid, i.e. the policy has acquired a paid-up value. On surrendering, the Surrender Value is paid immediately to the policyholder and the plan terminates.
What is the surrender value of my LIC policy?
Surrender value is the sum/ amount payable to the insurer when deciding to stop the policy and embody the same from LIC. The value is payable only after three full years of premiums are paid to LIC. After the policy has been surrendered, the company pays the surrender value leading to termination of coverage.
What is reduced paid-up status in LIC?
What is reduced paid-up insurance? Reduced paid-up insurance would allow the death benefit to remain in place without you being required to pay any future premiums. However, the death benefit is reduced to the amount of cash value that you had in your original life insurance policy.
How do you continue reduced paid-up policy?
If the policyholder does not want to continue paying premiums but wants the cover to continue, then he can opt for the paid-up option whereby the sum assured is reduced and the future premiums are not payable. However, the policyholder will lose the rider benefits if he opts for the Reduced Paid-up option.
Can I reduce premium paying term under my LIC policy?
Yes.you can reduce premium paying term under your policy.Subsequently,Sum Assured will be same and premium instalment will increase proportionally.Yoy can reduce both Sum Assured and term also. For further details,contact LIC branch or me for free consultation at my mobile 9415029805 or mail me your query ramesh [email protected] thanks
What are the tax exemptions on LIC premiums?
If the premium paid in a financial year exceeds 20\% of the actual capital sum assured, then tax benefit will be applicable only for the premium up to 20\% of the sum assured. Under section 80CCC, the maximum amount of deduction that can be claimed is limited to Rs 1,50,000/-. 3. Tax exemptions on LIC policies under section 80D:
No you can’t pay advance premium on your policies. In LIC all the calculations of your premium amount and due date for collection of premium are done by the system, and the system won’t allow any cashier to collect any advance premium. It will automatically cancel the transaction before the FUP (First Unpaid Premium) date.
Can I Surrender my LIC policy after 4 years?
LIC policy can be surrendered on the beginning of 4th year after paying 3 years completed premium. It would be a great loss to the policyholder if he surrenders the policy after 4 years. Approx. 35 to 40\% of the premium paid would be the surrender amount.