FAQs - Surrender/Partial Withdrawal/Assignment
Can I stop my policy before its entire duration?
Yes, you can stop your policy before its entire duration. This process is called policy surrender. On surrendering your policy, you will be paid a Surrender Value which will be equal to your Fund Value# (after deduction of charges for surrender) on the date of surrender. However, as per the IRDAI guidelines, no payment can be made to you before the completion of the lock-in period of five years.
While you can discontinue your policy before the policy term, it is advisable to stay invested for at least 10 years to enjoy the maximum benefits offered by your policy.
#Fund Value is the total value of your money that is invested in a fund of your choice.
What do I need to do to surrender my policy?
You need to submit the Payout Request Form which is available in the Download Center
section of our website. You can also get in touch with us through any of the modes listed in the Contact Us
section of our website as per your convenience.
What is Partial Withdrawal?
Partial Withdrawal is an option that allows you to withdraw a part of your fund value. The norms applicable for partial withdrawal may differ for every product. For product specific details on partial withdrawal, please refer to the respective product brochures available in the Products section
of our website.
What is a Top-up?
A Top-up is an option that allows you to invest your surplus money either once or multiple times in your policy. This amount is over and above your regular premium payments and can be made at any time while your policy is in force. Top-ups help to grow your wealth further by increasing the amount of your savings. The norms applicable for top-ups may differ for every product. For product specific details on top-ups, please refer to the product brochures available in the Products section
of our website.
What is 'transfer' or 'assignment' of a life insurance policy?
Transfer or assignment is a method by which you can transfer the benefits your life insurance policy to another person or institution (assignee). This can be used as a security for repayment of loans. In case of an unfortunate event, the benefits of the insurance policy will be used to repay the assignee.
How do I assign or transfer a life insurance policy?
You can assign or transfer your life insurance policy by authorising the assignment in your policy document. Another way of transferring or assigning the life insurance policy is to get a separate assignment deed executed.
The former case is a preferred mode of assignment as it is exempt from further stamp duty. An assignment should be signed by the assignor or his duly authorised agent, and should specifically state the fact of transfer or assignment. This document needs to be attested by at least one witness.
Is assignment allowed on all insurance plans?
Assignment is applicable on all insurance plans except pension and insurance policies taken under Married Women’s Property Act (MWP). MWP is a special act that protects your money from your creditors, and keeps it protected for your spouse and children in your absence.