Surrenders & Cancellations
All LICI policies can be surrendered for cash after at least 3 years’ premiums have been paid. However, we advise our valued policyholders not to surrender or cancel their life insurance policies for the following reasons:

1. You will be devoid of the precious life insurance cover. The purpose of insuring yourself was to secure your family members’ financial future. Don’t you think you are endangering their future by surrendering/cancelling your policy?

2. If you have to seek the same insurance cover again tomorrow, you will end up paying more premiums for the same benefit, because your age has increased and consequently has the risk in covering your life. Your current policy is cheaper and generally offers more value for your money invested. Remember the proverb, “the bird in hand is worth two in the bush”.

3. When you surrender your policy, you are breaking your contract. LICI also has covered your risk so far, as well as incurred management expenses in maintaining your policy. Thus you may receive only a portion of what you have paid as premiums – depending upon the policy term contracted and the duration elapsed so far.

4. No surrender value is available if the polices are cancelled before at least 3 years’ premiums are paid.

5. Vested bonuses are added only after at least 5 years’ premiums are paid and the five year period has elapsed from the commencement date of the policy. So no bonuses would accrue in respect of policies surrendered within 5 years from the commencement date.

Guaranteed Surrender Value: Provided that eligibility to receive surrender value is met by a policy, LICI guarantees that the surrender value payable shall not fall below 30% of all the premiums paid under the policy, excluding the first year premiums.

1. Requisition for a quotation of surrender value
2. Request for Surrender value Payment
3. Original Policy bond
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