Q.1202 Surrender values of LIC

policies

Question: Dear mr. Chand Can you just elaborate question of LIC policies with surrender value when I am already resident of USA? Is it possible to get bonuses etc while surrendering. I have paid all premiums etc and my LIC policies are less than Rs Ten Lakhs and are current. Answer: To determine whether there is a surrender value or bonuses on your policy its best to check your policy documentation. I can only provide you with basic information. Surrender values depend on the type of policy and the time period of how long the policy has been held. Generally insurance premiums must have been paid for at least three years before the option of surrender value arises. There are also some single premium policies where the surrender value gets acquired after the first year itself. People with insurance policies who move abroad and become non-residents and sometimes acquire foreign citizen the options may be: • Continue the policy by paying their insurance premiums from abroad Or • Convert their policy to a paid up policy Or • Surrender the policy. On surrender of policy the insurer will calculate the surrender value amount if any and pay you the surrender value. Generally if premiums on a policy are paid for three years or more and payment of insurance premiums is stopped, depending on the type of insurance policy, the insurance company may automatically convert the policy into a paid up policy. The insured value in such cases is calculated by the insurer based on the insurance premiums already paid. No money is paid to the insured until the policy’s original maturity date. Contact your insurance agent or LIC with your insurance policy details to get a precise answer as the your payable bonus and surrender value.