|Author: Kailash Kumar 28 Aug 2016 Member Level: Platinum Points : 3 (Rs 3) Voting Score: 0|
It depends on the type of policy.
In the case of pure term plans, the whole amount is consumed in covering the life risk and nothing remains to receive back. However in the case of policies where the premium paid is more than the life risk cover component, the policy has a cash value after consumption of the life risk coverage component. The cash value is the 'savings' portion of a life policy. When the policies remain in force for a number of years (normally 5 years), then the cash value known as the 'surrender value' also is returned by the insurance company.
Regarding payment of premium, normally a grace period of 15 days for the monthly mode of payment and 30 days in case of semi-annual or annual mode, is allowed and within the grace period, the premium has to be paid. Lapsed policies can be revived within a specified period and as per terms and conditions of the respective policies. If the policy has a cash value then the insurance company draws the life risk component from the remaining cash value of the policy. Surrendering a policy with a cash value before the maturity date is likely to result in a loss.
Regarding requirement of agent, one can pay the premium online also without any role of the agent.
|Author: Partha Kansabanik 28 Aug 2016 Member Level: Diamond Points : 3 (Rs 3) Voting Score: 0|
I am trying to answer your question in seriatim:-
(a) There is no formality associated with discontinuing your agent. If you take the help of your agent at the time of paying insurance premia, you can easily do this in this website: www.licindia.in. You can pay the premia online even without registering. If you register yourself,you can check every details about your policy.
(b) In case of life insurance and term insurance, the policy can be revived after payment of penalty. The exact amount can be checked from any branch of LIC.
(c) In case of life insurance, you will get your money back, after deduction of some administrative charges and insurance charges for the defaulting period.
|Author: Reena Upadhya 28 Aug 2016 Member Level: Silver Points : 3 (Rs 3) Voting Score: 0|
LIC had introduced 'agent portability' almost a year ago. As per this rule, you can change your agent if you are not satisfied with his services. This rule was mainly introduced to prevent the cases associated with lapsed policies. It is a simple procedure and I would suggest that you meet LIC advisor's development officer. He will let you know the procedure you need to follow to change your agent and will also help you with improved services in the future.
Your LIC policy has a grace period. This is the time period which is considered to be grace within which you can pay your premium amount if by any chance you were not able to pay it earlier. Payment made during grace period still continues to keep your policy alive. Usually a grace period of 15 days is given to those who pay monthly and a grace period of 30 days is given to them who choose to pay annually or once every 6 months. It depends on the policy you chose. You can revive your policy by paying amount within 5 years of first unpaid premium after which policy lapses.
There are different schemes of LIC to revive the policy:-
1) Revival by installment method,
2) Ordinary revival scheme,
3) Special revival scheme,
4) Survival benefit cum revival scheme and
5) Loan cum revival scheme
You can withdraw or surrender your policy but it should be at least 3 years old i.e., you should have paid premiums for at least 3 years and even after that criteria is fulfilled, you will be not getting the whole amount. You will be breaking the contract by cancelling your policy and thus you will only be getting a portion of amount that you paid all these years as premium. If you are withdrawing before 3 years then you should note that no surrender value of any sort will be provided to you. Bonuses are added only after 5 years and if you withdraw before this period then you will incur loss in this segment too. Your first year premium will not be calculated. Excluding your first year, 30% of the amount you paid as premium for the rest of the remaining years will be given to you.
|Author: Venkiteswaran. 02 Sep 2016 Member Level: Diamond Points : 4 (Rs 4) Voting Score: 0|
1. How to change my agent?
There is no need and no provision to change your LIC agent, as there is no contract between you and an LIC agent. As far as a policyholder is concerned, the contract is with insurance company. The agent is just a facilitator.
2. If I delay premium payment for 2-3yrs, what will be the consequences ?
Depending on the policy type, periodicity of premium payment and grace period, the policy may lapse. In some cases, the policy may be reactivated by paying all arrears premium with extra charges and interest; and medical check up also may be needed. You have to contact concerned LIC office or nearby LIC office for specific details.
3. If I withdraw policy, is there any refund or I will loose all money, so far i paid 3.5lakhs in premium?
Policy cannot be unilaterally withdrawn, but surrendered. Please read the policy terms and conditions. There will be a surrender value after a lock in period. Depending on the period run, type of policy and policy terms, you may get a fraction of the premia paid and some bonus. The policy if already assigned to someone, then the amount can be claimed by the assignee only by forfeiture. Please contact the LIC branch along with your policy document for specific details.