22 January 2017
All-your-money-queries-answered
Can I surrender an LIC insurance policy against which I have availed a loan?
Can I surrender an LIC insurance policy against which I have availed a loan? I have already paid 22 quarterly premiums.
Santosh Kumar Behera, Noida
In traditional LIC plans, the maximum loan amount is the higher of the guaranteed surrender value or special surrender value. You have the option to surrender a policy against which you have availed a loan, but the surrender value paid to you will be adjusted for the outstanding loan amount along with applicable interest. On the contrary, if the outstanding loan amount is more than the surrender value, the difference will have to be borne by you.