Can I reduce life insurance cover from an existing and running policy ?

POSTED BY hsingh82ggn ON November 12, 2014 5:14 pm COMMENTS (7)

I have a running life insurance policy and I want to reduce my cover to make it to a minimum permissible amount as per IRDA rules. I requested my life insurance company, but they are denying to reduce my life cover.   Please let me know if it is allowed as per IRDA and what is the process to do that.

7 replies on this article “Can I reduce life insurance cover from an existing and running policy ?”

  1. hsingh82ggn says:

    What about my Tax liability.

    I had claimed last premium paid under 80C exemption. If surrender it now, do i need to pay any tax ?

    1. Hemanth says:

      Just check with customer care as it changes from policy to policy…

  2. Hemanth says:

    I don’t think such thing is possible for ULIP. Better surrender or paid up the policy…

    I know u will loose money, but if u don’t do now, u will loose much more….

    Better to cut a finger than the hand…..

    Also, first take a term plan…. then only surrender the ULIP.

  3. hsingh82ggn says:

    It is a Ulip plan with an extended life cover.
    So I want to choose a traditional term plan separately instead paying mortality fee from my ULIP investment

    If I surrender today, I will loose a lot of part.

  4. Ajay says:

    You can make it as paid up. It means you will not have to pay any more premiums and they will prorate the sum assured.
    Can you provide more details about the policies. If it is endowment / ULIP why not make them paid up or surrender.

  5. hsingh82ggn says:

    I will take another term insurance cover, and current life insurance policy is charging very high mortality rates.

  6. Hemanth says:

    Why do u want to reduce life cover ?

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