How to Surrender IndiaFirst Life Insurance Policy? 

Are Policyholders Allowed to Surrender IndiaFirst Policy? 

When it comes to surrendering the policy, specific rules may be applicable. However, each policy has its terms & conditions, so it’s advisable to read them thoroughly before making final decisions. 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 surrender is two years if the policy has a term of ten years of less. 
• If the length of the policy is more than ten years, the minimum term is three years. 

Steps to Complete the Surrender Process

To surrender your IndiaFirst Life Insurance Policy, follow the steps 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

There are two types of surrender values in life insurance plans - guaranteed surrender value and special surrender value. 

Guaranteed Surrender Value 

Policyholders must pay the premium for at least three consistent years to avail of the guaranteed surrender value as a return. This value makes up only 30% of the premiums paid for the plan. Additionally, 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 minimum surrender value insured person gets 30% of INR/- 40,000 which is INR/- 12,000 excludes the first year premium. 

Special Surrender Value  

First, you need to know what the paid-up value is to comprehend 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. 

The original sum guaranteed multiplied by the ratio of the number of paid premiums to the number of payable premiums yields 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.