How to Close LIC Jeevan Labh Policy?

About LIC’s Jeevan Labh

LIC’s Jeevan Labh policy is an endowment-based life cover. This limited premium-payment policy secures the financial future of your loved ones in case of your unfortunate demise. The plan also supports your liquidity needs with its loan facility. Key features of this plan are:

• The plan entitles the surviving policyholder to receive a lump sum amount when the policy matures. 

• The plan offers the sum assured on death along with additional bonuses. 

• One can avail of extra protection against accidental death and disability. 

• The loan facility is available on paying two full years' premiums. 

• Policyholders can opt out of LIC Jeevan Labh at any point during the policy period and still receive benefits, subject to the acquired surrender value. 

Ways to Close LIC’s Jeevan Labh Policy

Before you decide to close LIC’s Jeevan Labh policy, you should be mindful of your savings and the number of dependents. Life insurance is crucial to secure your family’s future in the offset that you are not around. 

However, if you have found out better investment and savings avenues or due to some other reasons you want to terminate your insurance cover, then you can do it without significant consequences, here’s how you can do it. 

You can close your LIC Jeevan Labh policy in the following ways:

1. Closing Account by Not Paying Future Premiums

   If you stop paying due premiums to keep your policy in force, the policy lapses. There is, however, a grace period during which you can start making the payment again to revive your policy. If you still decide to make no further payments, the policy shall be terminated without benefits. Please note that that the insurer is not liable to pay any refund or death/maturity amount under such circumstances.

2. Closing Account During the Free-Look Period

   LIC’s Jeevan Labh policy comes with a free-look period of 15 days, during which a policyholder can read through the terms and conditions of the policy. If he/she finds his/herself dissatisfied with any aspect of the policy, can return this policy. LIC will refund the premium amount paid on accepting the request, subject to certain prorated risk deductions.

3. Surrendering LIC’s Jeevan Labh

   LIC Jeevan Labh allows policyholders to surrender their life insurance coverage at any point during the policy tenure. The only condition to surrendering a policy is that 2 full years’ premiums have to be duly paid. Once a policyholder decides to surrender LIC’s Jeevan Labh, he/she is eligible to receive an amount equal to the guaranteed surrender value or special surrender value, based on whichever amount is higher.

   To surrender a policy, one is required to submit the following documents:

   • Discharge form

   • Original policy document

   • NEFT mandate

   • Proof of age

4. Conversion to a Paid-Up Policy

   With LIC’s Jeevan Labh, if one has paid two full years' premiums and stopped any subsequent premium payments, it converts to a paid-up policy. Under paid-up policies, one is entitled to death and maturity benefits, however lower than the original sum assured at inception. 

   Of the four ways discussed above, surrendering the policy or converting it to a paid-up policy offers the maximum benefits. Therefore, you might want to continue to pay the premiums for a while longer and receive some amount instead of losing all benefits. 

How to Close Your LIC’s Jeevan Labh Policy?

You can initiate the closure of your Jeevan Labh policy online or offline. If you choose to do it online, you can visit LIC’s website and proceed as detailed below. In case of offline cancellation, you can visit the branch and submit a written request or call on their helpline number. 

• Reach out to LIC and inform the company about your need to cancel LIC’s Jeevan Labh Policy. 

• After intimation, LIC will offer you alternative solutions. 

• If you still want to continue, download the cancellation form from their website or get it from your nearest branch. 

• The bank will process your request and refund any amount, if applicable. 

Summing Up!

We have discussed three ways: halting future premium payments, canceling in the free look period, and surrendering the policy to close your LIC Jeevan Labh cover. With the first option, you do not receive any benefits. However, the latter options either refund the premium amount paid or the guaranteed surrender value (payable when two full-year premiums have been paid). Therefore, depending on how long you have had your policy, you can proceed with the necessary steps.