How can I get my money back from LIC policy?

A lapsed policy can be revived under the revival scheme by shifting the original date of commencement by the period of maximum two years. Under the Money Back Plan, policyholders have to bear policy preparation charges and stamp fee.

Can I withdraw money from LIC before maturity?

When you opt-out of a policy before its maturity, then it is called surrendering of the policy and the amount that you receive at the time, is LIC policy surrender value. However, surrender of policy is not recommended since the LIC surrender value will always be subsequently low.

What happens if you make a policy paid up?

If endowment policyholders make their policy paid up, the life cover will still continue and pay out if one of them passed away, but the insurer will reduce the amount of the guaranteed sum for which they are insured. If you make a policy paid up, you stop making premium payments into a life policy but still leave the coverage in place.

What is a paid up life insurance policy?

A life insurance policy in which if all the premium payments are complete and the insured is free of all payment obligations, the policy stays intact until insured’s death or termination of the policy is called paid-up policy. Description: Paid-up policy falls into the category of traditional insurance plans.

When to make your ULIP a paid up policy?

“Many make the Ulips paid-up, if they are underperforming or if the premiums are too high in traditional policies,” he says. One can activate this option by paying three annual premiums. In the new guidelines on traditional products, one can do this over a period of two years.

Why is it good to use paid up insurance?

Using the ‘paid-up’ option helps people keep their policy in force with reduced benefits and thus not lose much. Suresh Sadagopan of Ladder7 Financial Advisories says this option is useful when you are stuck with a wrong product, either because of mis-selling or due to the choice of a wrong policy.