I have an endowment policy from LIC running for the last three years. The sum assured is Rs 3 lakh. This year, I will be unable to pay the premium of around Rs 15,000. What sum will I get if I surrender the policy at this point?
One should consider avoiding surrendering a policy, because the surrender value would always be proportionately low
I have an endowment policy from LIC running for the last three years. The sum assured is Rs 3 lakh. This year, I will be unable to pay the premium of around Rs 15,000. What sum will I get if I surrender the policy at this point?
Sevak Chaturvedi, Bhopal
It is unfortunate that you are unable to pay the premiums on this policy in the fourth year of its running. You could consider surrendering the policy, which will end the policy contract with you. You receive a surrender value from the policy, when you surrender it. The surrender value is payable only after three full years’ premiums are paid to LIC. Moreover, if it is a participating policy the bonus gets attached to it as per prevalent rules. One should consider avoiding surrendering a policy, because the surrender value would always be proportionately low. Check the surrender value you will receive if you were to surrender the policy, because it is very much possible that the surrender value in the early years will be a lot less than the premiums you have paid so far. If you can continue paying for the policy, figure a way out. Else, cut your losses and exit at any cost.