Surrender your insurance policy
If your insurance policy’s free look period (FLP) is over and you don’t wish to continue with the policy, you can surrender it. Your free look period last for 15 to 30 days from the day you receive the insurance policy. However, when you surrender it, the membership fee/ premium amount will be refunded on a pro-rata basis. If you have an insurance linked to your loan account, it will be adjusted towards the outstanding loan amount (if any). The refund will be processed within seven business days from the date of request.
If you wish to surrender your policy, you can easily do it by visiting our service portal and raising a service request.
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Raise a request to surrender your insurance policy
- Visit our service portal by clicking on the Sign-in button on this page.
- Sign-in with your registered mobile number and the OTP.
- Verify your details with your date of birth and proceed.
- Go to ‘Menu.’
- Scroll down to the ‘Help & Support’ section.
- Raise a request to surrender your insurance.
- Select ‘Insurance Cancellation’ as ‘Query type.’
- Select ‘Cancel/Surrender’ as the ‘Sub query type.’
- Enter the additional information, upload documents, and submit your request.
Alternatively, you can click on the ‘Surrender your insurance policy’ option to go to the service portal. Once signed-in, you can select the insurance policy, select the relevant query and sub-query, and proceed to raise a request.
Once your request is raised, our representative will connect with you within 48 business hours who will guide you on further steps.
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In case you don’t wish to continue the insurance policy, you can raise a request to surrender it. All you have to sign-in to your account. Once signed-in, select your policy from “Your relations” and proceed to surrender.
When can a policy be surrendered?
An insurance policy can typically be surrendered after it has acquired a surrender value, usually after a minimum lock-in period, often three to five years, depending on the type of policy. Surrendering means terminating the policy before its maturity to receive the surrender value, which is the accumulated savings minus any surrender charges. It is generally advisable to surrender a policy only if absolutely necessary, as it can lead to a loss of benefits and financial coverage. Before surrendering, consider the financial implications and consult with your insurance provider to understand any penalties or loss of benefits involved.
What are the implications of surrendering a policy?
Surrendering an insurance policy can have several implications:
- Loss of coverage: Once surrendered, the policyholder no longer has the financial protection or benefits the policy provided, leaving them and their beneficiaries without coverage.
- Financial loss: The surrender value is often less than the total premiums paid, especially if surrendered early. Policyholders may lose a significant portion of their investment.
- Surrender charges: Insurers typically apply surrender charges, which can reduce the amount paid out to the policyholder upon surrender.
- Tax implications: Surrendering a policy may trigger tax liabilities on the surrender value, depending on the type of policy and the regulations in place.
- Impact on future insurance: Surrendering a policy may affect the ability to obtain new insurance in the future, particularly at the same premiums or coverage levels, due to changes in age or health status.
It is advisable to consult with a financial advisor before surrendering a policy to understand all potential implications.
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Check your insurance policy
Visit our service portal to view and update your policy details.
Frequently asked questions
Surrendering an insurance policy happens for cash needs, changing circumstances, unaffordable premiums, altered investment plans, or for better opportunities.
Surrendering an insurance policy entail terminating the coverage, receiving its accrued cash value, but forfeiting future benefits. It's a voluntary decision by the policyholder due to financial needs, changing circumstances, or better options. Surrendering may incur tax consequences and the loss of insurance protection.
If you surrender your policy, you will receive the surrender value, which is typically the accumulated savings or investment portion of the policy minus any applicable surrender charges. The amount depends on the type of policy, how long you have held it, and the premiums paid. It is often less than the total premiums paid.
Surrendering a policy results in losing the insurance coverage and benefits associated with it. You may receive a reduced payout due to surrender charges, and the amount could be significantly lower than the total premiums paid. There could also be tax implications on the surrender value, and obtaining future insurance could become more challenging.
