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POSTED BY ON July 19, 2013 4:23 pm COMMENTS (17)
Hi, I have 2 LIC policies – 1. Jeevan Anand 2. Money Back. I paid premium for these policies for 7 years till now. I wanted to make these policies paid up and start a term policy. When I visited LIC office for same, LIC personnels seems unaware of word ‘paid-up’. They told me I can either surrender my policy or simply stop paying further premiums and policy will lapse.
My question is – Is lapse policy same as paid up policy. I think these two are different. But then why does LIC fellow say so?
Thanks
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I have a Canara HSBC policy where I have paid 5 of the 10 premiums. As per policy document, it has achieved paid-up status. I would like to stop payments and claim paid-up amount at maturity, but am not sure if that will be a smooth process. Do insurance companies honour claims on paid-up policies in a similar fashion to normal policies where all premiums have been paid. Or should I expect hassles at the time of maturity if I take the paid-up route?
I dont think there will be any issues as such. If its already paid up , then just go to the branch and ask for the money. It should be processed
What will happen if i stop paying the premium after completing 2 years in lic jeevan anand policy of 20 years agreement??? Whether shall i continue still one more year to get paid up value at the maturity?
You will loose everything . Paying for 3 yrs is minimum
Do all LIC policies eligible for paid up option? If yes what is the process involved?
Yes, all policies other than term plan.
All you need to do is stop paying premium !
I want to make one of my LIC policy as PAID-UP. What is the formal process for that? Do I need to give any formal request to LIC? Please suggest.
Nothing, just stop paying premium. It will become paid up
Paid up policy means,
Say you have paid the premium for more than three years and you stop paying premium before the term get over,
Say you have taken 21 years term for your policy,
You stop paying premium after 7 years, now you r not paying your policy premium since last two years.
Now the status of your policy is called lapsed policy which means you don’t have insurance benefits,
You can revive it by paying premium for two years + late fee,
If you don’t revive it within fiveasy years than your policy becomes paid up policy, now you can do two things with your policy , either surrender or wait till the term get over
1) if you surrender you will get your surrender value, which will be less than the total premium you have paid.
2) if you wait till the term get over that is 21 year from the policy commenced you will get paid up value, which is with the seven years bonus of seven years.
I hope you have got your answer.
Hello Sir,
I have Money back policy for 20 years. I had paid the premium for 5 years and i had also taken loan against my LIC policy. After 2 months i am about to get the first money back . I am thinking to pay all the loan amount of LIC and after that I am planning to make the LIC policy as a Paid up policy. Can i do it? and how to make the LIC policy just by simplify not paying the 3 premium or should i inform the LIC through written mail. Plz suggest
Just mail LIC and inform them about it . It will become paid up
Hi Mohit/Manish,
What would be the returns in case of policy made paid up? I have a similar problem.
After maturity (policy term) you will get all your premium paid amount + declared bonus before policy made paid up
Yes. Just stop making payments , Thats one option .The other option is to send formal letter to them telling them you dont want to continue this policy .
Manish
who should you send the email to?
To the LIC customer care email and also to the branch email incase you have it .
Brijmohan, If you stop paying premium after last 3 consecutive full paid premium then your policy will be automatically converted to paid up, it will not lapse.
For more information read the policy document, it will be having all the information.