Policy Servicing – Lichelpline https://lichelpline.com Just another WordPress site Mon, 06 Nov 2023 13:23:14 +0000 en-US hourly 1 https://wordpress.org/?v=6.6.1 Cooling off LIC Policy https://lichelpline.com/cooling-off-lic-policy/ https://lichelpline.com/cooling-off-lic-policy/#respond Mon, 21 Aug 2023 15:31:12 +0000 https://lichelpline.com/?p=5848

Cooling off LIC Policy

LIC policy returned | Within 15days of Policy bond receiving | Documents required | Request Letter | Bank Details

COOLING OFF LIC POLICY

A “cooling-off period” refers to a specific period of 15days during which a policyholder can cancel his life insurance policy and receive a full refund of the premiums paid without incurring any penalties or charges.

During this cooling-off period, policyholders have the opportunity to review the terms and conditions of their insurance policy more thoroughly. If they decide that the policy doesn’t meet their needs or if they change their mind for any reason, they can contact the insurance company, formally request cancellation, and receive a full refund of the premiums paid.

Documents required for Cancellation of LIC Policy during Cooling off period
  1. Request Letter: The policyholder usually needs to submit a written request for cancellation during the cooling-off period. This request should be made to the LIC branch or agent through whom the policy was purchased.
  2. Original LIC Policy Bond : The policyholder should return the original policy document along with the cancellation request.
  3. Original LIC Policy Receipt : The policyholder should return the original First Premium Receipt
  4. Id Proof: Any of Pan, Addhar, DL, Voter Card, Passport, etc.
  5. Bank Details: Cancel Cheque which has the name printed on it or Bank Statement or Bank Passbook showing the customers name, Bank Account Number, MICR Code and IFSC Code

Format for written request Letter for cooling off LIC Policy

[Your Name]
[Your Address]
[City, State, ZIP Code]
[Your LIC Policy Number]
[Date]

[The Branch Manager / Customer Service Department]
[Name of LIC Branch]
[Address of LIC Branch]
[City, State, Pin Code]

Subject: Cancellation Request for LIC Policy No. [Your Policy Number] in the cooling off period

Dear Sir/Madam,

I am writing to request the cancellation of my LIC policy, Policy No. [Your Policy Number], which was issued on [Date of Policy Issuance]. I am exercising my right to cancel the policy within the cooling-off period as provided by the terms and conditions of the policy. I also state that whatever terms and conditions were told by the advisor they are not available in this policy. 

I have enclosed the original policy document and original premium payment receipt for your reference. Please find the necessary details below:

– Policyholder Name: [Your Full Name]
– Date of Birth: [Your Date of Birth]
– Address: [Your Address as per Policy]
– Contact Number: [Your Contact Number]
– Email Address: [Your Email Address]
– Bank Account Details for Refund : [Your Bank Account Number, IFSC Code, and Bank Name]. I have also enclosed the canceled cheque or self-attested copy of the bank passbook or bank statement. 

I hereby also state that I have not taken any kind of tax benefit from this policy.

I kindly request that you process this cancellation request as soon as possible and arrange for a full refund of the premiums paid to the bank account mentioned above. I understand that no charges or penalties should be applied since this request is made within the stipulated cooling-off period.

Thank you for your prompt attention to this matter.

Sincerely,

[Your Signature]

[Your Full Name]

Enclosures: Original Policy Document, Premium Payment Receipt, Id proof, Bank details

Note 1: This is the right of the policyholder and do remember to send this letter to the LIC branch where you purchased the policy via certified mail or a reliable courier service to ensure it’s received. Keep copies of all correspondence for your records, and follow up with LIC to ensure the cancellation and refund are processed as requested. 

LIC Resources

Buy LIC Policies OnlineLIC Policies ServicingLIC Agent’s resources
LIC’s SIIPPay Premium OnlineJoin LIC as Advisor
Term Plan with ROPAddress CorrectionIC-38 Study Material
LIC 5 Year PlanSurrender of LIC PolicyAgents training Academy
LIC Jeevan UmangLIC Branch ChangeMock Test IC 38
LIC pension PlanNomination ChangeLIC Forms
LIC's Top Selling Policies
LIC Jeevan Umang
LIC Child Plan
LIC Jeevan akshya VII
]]> https://lichelpline.com/cooling-off-lic-policy/feed/ 0 Revival of LIC Lapsed Policy https://lichelpline.com/revival-of-lic-lapsed-policy/ https://lichelpline.com/revival-of-lic-lapsed-policy/#respond Sun, 20 Aug 2023 15:37:11 +0000 https://lichelpline.com/?p=5798

Revival of LIC Lapsed Policy

Procedure | Forms | Type of Revival | Grace Period | Documents Required 

When the premium of inforced policy is not paid timely that is on the due date or within the grace period, the LIC policy got lapsed. Lapsation means risk cover is stopped temporarily for a period until the policy is not revived. During lapsation, the policyholder does not get the full benefits of the LIC policy. Even in case of death, no claim is paid to the nominee of the life assured except the paid value. So to get the full benefits, the revival of lapsed LIC policy is must.

Grace Period: The grace period is the additional time period given in LIC policy after the due date, that is if the full premium is paid within this period neither late fees is applied nor the policy will be lapsed.

Grace period in Endowment policy if the premium mode is yearly, Half-yearly, or Quarterly: 30 days.

Grace period in Monthly policies, ULIPS, and Term plans is just 15 days.

An inforce LIC policy is like an umbrella for the family of the policyholder but a lapsed LIC policy is like a torn umbrella. It neither helps the policyholder nor its family members in any manner. 

Revival of LIC Lapsed Policy

Note: A policy can be revived within 2 years from the FUP and before the maturity of the LIC policy. FUP stands for First Unpaid Premium. After 2 years, the policy can not be revived in any circumstances.

Steps to restart the LIC lapsed policy

  1. Pay the total due premium amount: Premium amount + Late fees 
  2. Get the revival quotation of the lapsed policy from the nearest branch. 
  3. Fill the revival form    a)Form no. 680 DGH for those aged 18 & above                                            b) Form no. 700 & 720  for aged less than 18yrs 
  4. Id proof: Any of Pan, Adhar, Voter Id, DL, Passport
  5. Address proof: Adhar, Voter Id, DL, Passport, any utility bill
  6.  
Note 1: If the age is more or the sum assured is higher than a particular amount then the LIC underwriter may ask the policyholder to go for medical tests. These test details will be shared by the LIC officer in the branch. 
Note 2: Form no. 680, 700 or 720 mentioned above are downloadable in just 1 click. 

Types of Revival

Ordinary Revival: It is the most basic kind of revival where the policyholder has to pay the entire premium due from FUP along with late fees in one go. The above-mentioned documents are also required to be submitted at the time of revival.

Loan cum Revival: When the policyholder is unable to pay the total premium due along with the late fees as mentioned in ordinary revival, then he can go for loan cum revival. The loan is calculated on the policy and given to the customer and his policy is revived. After that, the customer has to pay both the premium and loan amount together in installments. At the time of loan cum revival the policyholder needs to carry the Original policy bond, NEFT form, and loan form along with the documents mentioned above. 

SB cum Revival: This kind of revival is possible only in moneyback policies where money back is fall due in a certain time. The moneyback is adjusted in the revival amount and the policy is revived. Note: Discharge form is taken along with NEFT form and bank details. 

Procedure to be followed in LIC Branch

Visit the inquiry counter or the Policy servicing department (PS dept) in the LIC branch. Ask for policy revival quotation and form no. 680 as mentioned above. you can download this form by clicking on form no. 680. The branch official will provide you with the revival quotation. Fill the form no. 680. Note that fill the same details in form no. 680 as you filled in at the time of taking the LIC policy, like Height Weight and signature. Visit the PS dept of LIC they will verify the details and after that by paying the total premium due at the counter the policy will start again.

Note: Policies of SA more than 5lac are being uploaded by the staff on the DOC Q app.

LIC's Top Selling Policies

LIC's Top selling Policies

LIC Jeevan Umang
LIC Child Plan
LIC Jeevan akshya VII
]]> https://lichelpline.com/revival-of-lic-lapsed-policy/feed/ 0 How to surrender LIC Policy? https://lichelpline.com/how-to-surrender-lic-policy/ https://lichelpline.com/how-to-surrender-lic-policy/#respond Sun, 20 Aug 2023 09:10:26 +0000 https://lichelpline.com/?p=5725

How to surrender LIC policy?

How to surrender LIC policy
What is closing, cancellation or surrender of LIC Policy :

Prematurely closing lic policy- When someone is closing LIC policy before completing the term / before maturity. Surrender is possible only if the policy has acquired paid up value.  It is called the surrender of LIC policy.

Cancellation- It is the word used for closing the LIC policy within 15 days of taking the LIC policy. So if the policyholder does not agree with the terms and conditions of the LIC policy then within 15 days he has the right to cancel the LIC policy. This is also called the Free Look Period.

  • The policyholder can return the policy stating the reasons for his objection.
  • The policyholder will get the premium that he has paid for that policy. 
  • LIC will deduct, the proportionate risk premium for the period you were covered and the expenses incurred from the premium.

Lock-in period –Different policies have different locking periods. You can not close the policy before completing the locking period. In traditional plans like Jeevan Labh, Jeevan Lakshya or Jeevan Umang kind of plans, the locking period is just of 2 years. Whereas locking in the period of ULIPS is 5 years.

How surrender value is calculated?

For traditional plans: {No. of premium paid/Total number of premiums to be paid + total bonus received } * Surrender Factor. The actual surrender value can be calculated from the branch only.

For Ulips –After the locking period, ULIPS can be surrendered partially or fully. The process is simple, one can get partial amount by cancelling the partial surrender amount by cancelling partial number of units. or to get the full amount, one can close the policy fully. There are no surrender charges in ULIPS after the locking period.

Check list of documents for LIC Policy surrender?

Original LIC policy bond document
LIC Surrender form- form 5074
LIC NEFT form
Bank account details
Attested copy of any of ID proof like Aadhar card, pan card or driving license.
Hand-written letter to LIC stating the reason to discontinue

Implications of surrender of LIC Policy?

Surrendering a Life Insurance Corporation (LIC) policy in India or any life insurance policy generally has several implications, and it’s important to understand these consequences before making a decision:

Financial Loss: Surrendering a policy before its maturity can result in a financial loss. The surrender value you receive may be significantly lower than the total premiums paid, especially if you surrender the policy early in its term. This is because life insurance policies often have high initial expenses and fees.

Loss of Insurance Coverage: When you surrender your LIC policy, you lose the life insurance coverage provided by that policy. This means your beneficiaries will no longer receive a death benefit if something were to happen to you.

Lost Investment Opportunity: Some life insurance policies, like endowment or unit-linked insurance plans (ULIPs), also offer investment components. Surrendering such policies means you miss out on the potential returns from these investments

Conclusion: 

How to surrender LIC Policy?

To conclude, by surrendering the LIC policy, the customer loses out on a lot of benefits of the scheme. If surrendered before a definite period, the amount of premium is much higher than the value received. Therefore, retention of existing policies and continuation of all policies without allowing them to lapse is the best strategy for continuing life insurance protection.

Kanyadaan Yojna >
Retire and enjoy >
Jeevan Labh >
Jeevan Shiromani >
LIC's Top Selling Policies

LIC's Top selling Policies

LIC Jeevan Umang
LIC Child Plan
LIC Jeevan akshya VII
]]> https://lichelpline.com/how-to-surrender-lic-policy/feed/ 0