Download LIC Policy Surrender Form No. 5074 pdf (Free 2024)

Are you looking to Download LIC Surrender Form 5074 and Surrender Your LIC Policy? When it comes to life insurance, circumstances may change, leading the policyholders to consider surrendering their LIC policy. While LIC agents and LIC will never want you to surrender the plan before maturity, it is still possible to do it.

Guaranteed Surrender Value (GSV) – Once you have completed 2-3 years of premium payment and your LIC policy is eligible for a surrender value, then the first type of surrender value of such policy is the Guaranteed Surrender Value. Generally, the Guaranteed Surrender Value (or GSV) for LIC plans is 30% of the premiums paid, excluding the 1st year premium. It also excludes any additional premium paid for riders, taxes, etc. However, the actual percentage of this Guaranteed Surrender Value depends on the LIC Policy Term and the policy year in which the policy is being surrendered. Let us say you decide to surrender your LIC New Jeevan Anand policy. Your LIC policy term is 30 years but you now want to surrender it in say 12 th year.
Special Surrender Value (SSV) – The Special Surrender Value is the % of Total Paid-up Value of the policy. It is calculated as = (Sum Assured * (No. of premiums paid / No. of premiums payable) + total bonuses received) * Special Surrender Factor or SSF. To put it simply, the Special surrender value is calculated by simply adding paid up sum assured and all the accrued bonuses and the multiplying the sum with special surrender factor. This Surrender Value Factor changes based on the type of LIC policy, term of the policy and several other factors.

That’s about it. Surrendering an LIC policy can be a significant decision, and having a clear understanding of the process is crucial. By following the steps outlined in this article, you can easily download LIC Surrender Form 5074, also known as the LIC surrender form. Remember to carefully fill out the form, adhere to the submission guidelines, and provide any additional documentation required by LIC.

I hope you now have a good understanding of How to download LIC Surrender Form No. 5074 in India in 2024 to surrender your LIC policy.

Disclaimer – The views expressed above should not be considered professional investment advice or advertisement or otherwise. The article is for general educational purposes only. The readers are requested to take into consideration all the risk factors including their financial condition, suitability to risk-return profile and the likes and take professional investment advice before taking any financial decisions or actions which may have financial implications now or in future.

Written by Dev Ashish Dev is a SEBI-Registered Investment Advisor (Fee Only SEBI RIA). He works with small investors as well as HNI clients across India. If you want to get unbiased, proper and tailor-made financial advice, you can get in touch with him for Goal-based Financial Planning, Retirement Planning, Mutual Fund Portfolio Review and HNI (Affluent) Portfolio Advisory. View all posts by Dev Ashish