Shall I withdraw LIC offline term insurance under processing and buy LIC online term insurance ?

POSTED BY Amit Gupta ON May 24, 2014 9:09 am COMMENTS (2)

Dear Jagoinvestor Team,

Thanks for writing a post on LIC online term insurance. I would like to thank you for posting the info as soon as it got launched. I have a query regarding LIC term insurance. I would appreciate if you can provide your valuable inputs.

I recently bought LIC term insurance for Rs 50 lakh cover after analyzing lot of different term insurance plans offered by private firms through LIC agent on 3rd May 2014. I have submitted the documents and the medical tests results are also out. I had to pay the first premium in advance to start the process. I have also received the premium payment receipt. The agent told me that it will take around 10 working days for the process to complete. The LIC has sent back my application to provide some more details about my operation which I had undergone during my childhood. The agent was always resisting to enter this detail but I didn’t want to hide any facts hence I mentioned it.

Recently, I came to know about LIC online term plan through your blog and they are much cheaper than the offline ones. I always wanted to buy online plan but LIC didn’t offer any online plan when I bought the policy. Since my case is still under process and the policy number hasn’t been allotted to me yet so I was thinking to cancel the offline policy and purchase a new one through online mode. As per my understanding, LIC will deduct some processing charges plus medical charges and refund me the remaining amount but I am fine with it because I don’t have to pay the excess premium every year. The difference in offline and online premium is around 40%. I would like to know that if I cancel my offline policy now then will LIC refund me the remaining amount after deducting processing charges and medical tests fees or it will all go in vain. I guess as per IRDA there is some 15-20 days period to withdraw the policy if the consumer is not satisfied. Further, if I apply for online term plan after cancelling offline term plan then will they accept my case. As I am rejecting their offline plan and buying same plan through online mode.

I will appreciate if any jagoinvestor user can give me valuable advise.

Regards

Amit Gupta

 

 

 

2 replies on this article “Shall I withdraw LIC offline term insurance under processing and buy LIC online term insurance ?”

  1. Sambaran Mitra says:

    Hard luck Amit Gupta. It is a cruel joke that life threw on you. Only if you would have delayed a little longer, you could have directly gone for online.
    I myself suffer like you. Mine is a very costly 5-6 year old LIC term policy. Now I have to overcome the inertia to dump it for online. I am not sure, I will get the energy to do that.

    1. Amit Gupta says:

      Hi Sambaran,

      I have withdrawn the offline term insurance plan and I have also received the premium amount from LIC after deducting Rs 1500 as medical and other expenses. I am going to apply for the online LIC term insurance with increased cover for the same price I paid for offline plan. I withdrew the offline plan as my offline plan was under process and the policy number was not allotted to me. You can also apply for the online plan. You can play safe and let the online process be completed then you can stop paying the offline premium whenever you want. This way you can save the premium amount and you will always have a term plan even if the online policy gets rejected due to any reason.

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