How do i surrender my LIC policies? Is there anyone who can help me, thanks

Ans: You have a superannuation policy completing 20 years in June 2025. If LIC is not responding, follow these steps.

Gather Information
Policy Documents: Keep all policy documents handy. This includes the original policy, premium receipts, and correspondence.

Details: Note down policy number, premium paid, and maturity details.

Visit the LIC Branch
In-Person Visit: Visit the nearest LIC branch. Carry your policy documents and ID proof.

Branch Manager: Ask to speak to the Branch Manager. Explain your situation and request assistance.

Send Registered Letters
Registered Post: Send a registered letter to the LIC branch and head office. Include policy details and your request to close the policy.

Proof of Delivery: Keep the receipt and delivery proof. This ensures you have evidence of communication.

Online Grievance Portal
LIC Portal: Log in to the LIC grievance portal. Submit your complaint with all necessary details.

Reference Number: Note the reference number. This helps track your complaint.

Contacting the Insurance Ombudsman
Ombudsman: If LIC does not respond within 30 days, contact the Insurance Ombudsman.

Complaint: File a complaint with the Ombudsman. Include all correspondence and proof of delivery.

Escalate to IRDAI
IRDAI: If the Ombudsman does not resolve the issue, escalate it to the Insurance Regulatory and Development Authority of India (IRDAI).

Complaint Registration: Use the IGMS (Integrated Grievance Management System) on the IRDAI website.

Steps for Filing Complaints
Drafting: Draft your complaint clearly. Mention all details and attach relevant documents.

Follow-Up: Follow up regularly. Keep records of all communications.

Seeking Legal Help
Legal Advisor: If all else fails, consult a legal advisor. They can guide you on filing a consumer court case.

Court Case: As a last resort, file a case in consumer court. Provide all evidence and documentation.

Final Insights
Persistence is key. Follow these steps diligently to ensure your policy is closed successfully.

Best Regards,

K. Ramalingam, MBA, CFP

Chief Financial Planner

www.holisticinvestment.in

Ans: Surrender the Policy

You can surrender your LIC policy. This means you will stop the policy and receive the surrender value. The surrender value is usually less than the total premiums paid.


Paid-Up Policy

Convert your LIC policy to a paid-up policy. This means you stop paying premiums, and the policy continues with reduced benefits.

Consult CFP

Contact your CFP for specific details on surrender value, and paid-up policy options.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

Ans: considering citizenship changes and the associated tax implications on LIC policies is wise for your son. Surrendering these policies could indeed reduce his future tax burden as a resident of another country. Let’s go over some key points regarding this decision.

Dual Taxation Risks on Policy Maturity
Potential Double Taxation: If your son becomes a tax resident of another country, his worldwide income may be taxable there. This includes any proceeds from Indian LIC policies, which could lead to double taxation.

Taxable in India on Maturity: Certain LIC policy proceeds are taxable in India upon maturity, particularly if the sum assured is below a specific premium-to-sum-assured ratio.

Complex Tax Reporting: He may have to report these policy earnings in both India and his new country of citizenship, leading to more complex tax filings.

Evaluating Surrendering LIC Policies
Immediate Surrender Value: If the LIC policy is surrendered before maturity, he would receive the surrender value, which might be lower than the maturity amount but could save him from future taxation abroad.

Avoid Future Taxable Events: By surrendering the policy, your son can avoid potential tax issues on future policy payouts, including long-term foreign tax on maturity proceeds or accrued income.

Penalty-Free Options: In some cases, LIC policies allow for partial or full surrender without significant penalties after a certain policy tenure. It’s worth reviewing his specific policy terms.

Potential Alternative Investment Options
Mutual Funds and NPS: If he has an investment horizon and can manage moderate risk, he could reinvest the surrender value in mutual funds. Actively managed funds in India can offer tax-efficient returns for long-term goals compared to LIC policies, especially if his tax residency shifts.

Top Tax-Efficient Options: Tax-free bonds, hybrid mutual funds, or other options that align with his risk profile can offer more flexible and efficient returns. Investing through a Certified Financial Planner can ensure a suitable asset mix.

Insurance Coverage Alternatives: If LIC policies also provide insurance, he may want to consider term insurance in the new country for essential risk cover without tax complexities.

Important Steps Before Surrendering Policies
Calculate Surrender Value: He should review the surrender value and compare it with the remaining tenure and expected benefits of the LIC policies to make an informed decision.

Consult a Tax Expert: Dual taxation implications can be complex, especially with international treaties and tax laws. Consulting a tax expert in both India and the new country is advisable.

Consider Exchange Rate Impact: The value of the maturity proceeds might fluctuate with exchange rates. Surrendering the policy can give him more control over the funds in his currency of choice.

Final Insights
Your son’s decision to surrender LIC policies before changing citizenship can offer relief from dual tax obligations, simplify his tax filing process, and provide him with a more flexible and tax-efficient investment portfolio. Examining his goals, needs, and future tax considerations will allow him to make the most effective decision.

Best Regards,
K. Ramalingam, MBA, CFP

Chief Financial Planner

www.holisticinvestment.in
https://www.youtube.com/@HolisticInvestment

Ans: Hello;

General Comments:
Jeevan Saral is an ideal example as to why people should not buy traditional endowment policies even for life insurance forget about investments.

It is an endowment policy that offers cover for long terms. However some people noticed that on maturity the lumpsum money they received from the policy was less than the sum of all premiums they paid during the policy period.

It was argued by LIC that as people grew older the premium allocation towards mortality risk was higher hence the people received less sum at maturity then total of premiums paid.

Matter went to Supreme court since people felt cheated. But LIC had all things mentioned in the policy document so they couldn't be indicted.

Later LIC closed this plan due to the negative publicity.

Specific comments:
Talk to your agent about this and he will process it by getting your kyc and neft details, original policy certificate and duly filled surrender form.

I believe it will have to be done only at the base branch from where your policy was issued.

Whatever money you are getting as surrender value( should be between 4-5L), consider it as God's blessing and reinvest it elsewhere.

Best wishes;