Hi, I had invested in LIC policy and paid premium for 2 years. Unfortunately, after that I stopped paying premium, and policy status is showing as lapsed now. Can I get my money paid for premium back? What is the process. Policy was for period of 15 years.

Ans: Here you have not mentioned the type of policy (ULIP / Traditional) for us to give a detailed analysis.

For life insurance plans issued after April 1, 2012, the exemption from tax on single premium life insurance is valid only when the premium is less than 10% of the total sum assured.

Now, if the policy is taken before April 2012, you could avail the exemptions under Section 10D if the premiums paid in a single year during the policy term are not more than 20% of the sum assured. You will need to show the entire maturity proceeds in your return if taxable.

The entire premium of a life insurance plan is eligible for a tax deduction as per Section 80C up to a maximum limit of Rs 1.5 lakh. 

Ans: Taxability will depend on type of policy and premium paid.

Amount received from traditional life policy with premium upto 10% of sum assured is usually not taxable. However if is annuity plan of LIC to receive pension, amount received is taxable u/s 80CCC on account of the surrender of the annuity plan

Ans: Hello, do confirm this with the customer care of LIC as it depends on the type of policy you have or speak to the HR of your company for the same.

Ans: If you are unable to trace your wife and she has left you, you may face challenges in accessing or encashing the LIC policy that is in her name. Here are some steps you can take:

Contact LIC: Reach out to LIC (Life Insurance Corporation of India) with all the details of the policy. Explain your situation and request guidance on how to proceed in the absence of your wife.
Legal Assistance: Consult with a lawyer to understand the legal options available to you. They can guide you through the process of claiming or transferring the policy if your wife is not reachable or if there are legal grounds to do so.
Family and Friends: Try to gather any information or documents related to the policy that might help in claiming or transferring the policy. If your wife has any close family members or friends who may have information about her, try reaching out to them as well.
Policy Details: Ensure you have all the policy details, including the policy number, date of commencement, and premium payment receipts, as these will be required for any further actions or claims.
LIC Branch: Visit the nearest LIC branch office and explain your situation. They may be able to assist you in identifying the policy status and guiding you on the next steps.
Declare Her Missing: If you have made efforts to locate your wife without success, you may need to take legal steps to declare her as missing or absent. This can be a lengthy process and may require court intervention.
Nomination and Assignment: Check if you are named as a nominee or assignee in the policy. If you are, you may have a better chance of claiming or transferring the policy. If not, you may need to explore legal options to gain access to the policy.
It's important to act promptly and seek professional guidance to navigate this complex situation. A lawyer specializing in insurance or family law can provide valuable advice and assistance in resolving this issue.

Ans: As per the policy – “Total amount of purchase price under all the policies under this plan, and all the policies taken under Pradhan Mantri Vaya Vandana Yojana (with UIN 512G311V01 and UIN: 512G311V02) allowed to a senior citizen shall not exceed Rs 15 lakhs.”

But the effects of exceeding this maximum limit is not mentioned anywhere in the policy

While LIC has some responsibility for not initially flagging the cap excess, your agent also played a role in advising the investment.
Now, to get this issue resolved, explain your situation and highlight the lack of awareness about the cap. You can request LIC to reconsider the penalties.

If no resolution is reached with LIC, you can consider approaching the Insurance Regulatory and Development Authority of India (IRDAI) to file a complaint. They can mediate the issue and advocate for a fair solution.

For legal guidance and stronger representation, you may consider consulting a lawyer specializing in insurance matters. They can analyze the contract, identify potential legal grounds, and advise you on the best course of action.

Also, gather all relevant documents related to the investment, including the policy certificate, communication from LIC, and any emails/records with your agent.