In the era of online affordable term plans, I am sure most of us would be evaluating our existing LIC endowment/money back policies to ensure that they meet our current insurance needs. After a careful examination of your insurance needs, should you feel the need to surrender your LIC policy, your first step should be to find out relevant information from the LIC India official website http://www.licindia.in/. However very soon you will realize that the information you are looking for is not present on the website. As of today, I have not been able to find any information on how to surrender an LIC policy on the LIC portal. The Downloads section has everything but the Policy Surrender Forms. Currently LIC does not have any facility to surrender an LIC Policy online. Here is what you can do to surrender your policy:
Visit the nearest LIC Branch in your region LIC Branch Locator and collect the following three forms:
(You can alternately also download a copy from my post and use a printout of the same)
The forms are self explanatory. Fill up all the forms. It is a good practice to attach a covering letter mentioning your policy details and a list of all the documents you are submitting. You may use the following sample letter: LIC_Surrender_Request_Letter
Please remember to provide your Bank Account information in the NEFT Mandate form. This will facilitate LIC to credit the surrender value (if any) into your Savings Bank Account via NEFT. You also need to enclose a cancelled cheque (Do not strike on the Account Number of Branch Address on the cheque). In case your Cheque Book does not have your name, enclose a copy of the first page of your passbook (This will indicate that that you are the rightful owner of that Savings Account).
Once you have all these documents ready, you need to send them along with your Original Policy Certificate to the Branch where you hold your LIC Policy. It is not important for you to submit these documents personally. All you need is a reliable courier service that could deliver the documents at the right place. This is important because you would be sending your Original Policy Document along with it. You can also submit these documents through your LIC Agent if you are remotely located.
I hope that you found this information helpful.
Please note: This post does not aim at urging people to surrender their LIC Policies. This only documents the procedure of doing so, should you ever feel the need, depending on your financial situation.