How to Surrender IndiaFirst Life Insurance Policy? 

Do Policyholders Allowed to Surrender IndiaFirst Policy? 

When it comes to surrendering the policy, specific rules may be applicable. However, each policy has its own terms & consditions, so it's advisable to read them thoroughly before making final descisions. However, the period of surrendering the policy may vary from one plan to another based on the policy tenure and premium payment. Here is the average period to ensure IndiaFirst policy given below:

Under Single Premium Plan 

A single premium insurance plan is a special plan where an insured person has to pay the entire premium once at the time of buying the policy. If you're a single premium plan policyholder, you can surrender your policy at least two years after the policy issue date. 

Under Limited Period and Regular Premium Plan 

There are differences in the terms and conditions of policies under limited period and regular premium plans. However, the following general details are provided:

• The period of policy surrended is two years if the policy has a term of ten year of less. 
• If the length of the policy is more than ten year, the minimum term is three years. 

Steps to Complete the Surrender Process

To surrender your IndiaFirst Life Insurance Policy, follow the setps mentioned below:

Documents Required for Surrendering IndiaFirst Policy 

Undoubtedly, it is not advisable to surrender the policy. If the policyholder wants to surrender their life insurance policy, the following documents need to be followed:

Types of Surrender in IndiaFirst Policy

Basically there are two types of surrender value in life insurance plans - gauranteed surrender value and special surrender value. 

Guaranteed Surrender Value 

Policyholders must pay the premium for at least three consistent years to avail of the gauranteed surrender value as a return. This value makes up only 30% of the premiums paid for the plan. Addittionally, it does not include the first-year premium, any additional fees for riders, or any bonuses you may have received. 

For instance, in case the policyholder paid INR/- 60,000 (INR/- 20,000 per year x 3) for an initial three years for a sum assured of INR/- 6 lakh, the minmum surrender value insured person get 30% of INR/- 40,000 which is INR/- 12,000 excludes the first year premium. 

Special Surrender Value  

First, you need to knwo what the paid-up value is to comprehent this. If the policyholder stops paying premiums after a specific time, the policy would still be in effect but with a smaller sum assured, known as paid-up value. 

Ther original sum gauranteed multiplied by the ratio of the number of paid premium to the number of payable premiums yeild the paid-up value. 

When you cancel a policy, you receive a specific surrender value, determined by adding the paid-up value and the total bonus and multiplying the result by the surrender value factor.