What does it mean to surrender an LIC policy?

Surrendering an LIC policy means terminating the policy before its chosen term concludes.

Can I maintain insurance cover after surrendering my LIC policy?

Yes, with the Assignment of Life Insurance Policies (ALIP) program, you can receive the surrender value of your endowment insurance policy while still keeping your life cover benefits.

What is the process for surrendering an LIC policy?

To surrender your LIC policy, you need to submit a surrender request form along with the original policy document and other required documents to the nearest LIC branch.

Are there any alternatives to surrendering an LIC policy?

Yes, instead of surrendering, you can opt for the ALIP program, which allows you to access the policy’s value while maintaining life coverage.

What is the process for surrendering an LIC policy?

To surrender your LIC policy, you need to submit a surrender request form along with the original policy document and other required documents to the nearest LIC branch.

Are there any alternatives to surrendering an LIC policy?

Yes, instead of surrendering, you can opt for the ALIP program, which allows you to access the policy’s value while maintaining life coverage.

Home

Schemes

Services

Community

About Us

Maintaining Insurance Cover: Surrendering Your LIC Policy Explained

Tanisha

Author

Updated: 28-01-2025 at 6:26 AM

Maintaining Insurance Cover: Surrendering Your LIC Policy Explained

Life Insurance Corporation LIC policyholders usually don’t prefer accessing their funds before maturity as usually surrendering an LIC policy means the policyholder will lose the policy and the coverage. However, the Assignment of Life Insurance Policies (ALIP) program by ACESO allows policyholders to surrender their policies without losing the coverage.

What Is Assignment Of Life Insurance Policies?

The ALIP program was introduced by ACESCO to help policyholders surrender their insurance policies while also retaining the life cover. This program was introduced mainly for people who need immediate cash but also do not want to lose their life coverage.

Policyholders can assign their policies to ACESCO to receive their surrender value and also continue to enjoy the life cover benefits. ACESCO collects funds from those people who need money and also lets the policyholders keep their life insurance coverage.

LIC has issued circulars regarding such programs, emphasising that policyholders should be cautious. However, ACESO has assured that the program is fully compliant with the Insurance Act of 1938**.**

Read more: Ayushman Card

How Does Assignment Of Life Insurance Policies Work?

Let’s take a look at how the ALIP program works.

The policyholders have to first assign their LIC policies to ACESO. Then ACESO will collect the amount of the policy. The policyholder will then receive the entire amount they put on for the policy’s investment. This ensures that the policyholder gets the full value of the investment, providing them with immediate financial assistance.

The management of the ALIP program is taken care of by an independent Special Purpose Vehicle (SPV) Trust, which is under a SEBI-registered trusteeship company.

ACESO also ensures that the policyholder does not lose their life coverage and gets to enjoy the benefits of the coverage. If the policyholder passes away after assigning the policy to ACESO, then the nominee of the policy receives the insurance benefits. This ensures that the policy benefits are utilised and the policyholder’s family remains financially protected without having to pay the remaining premiums.

Read more: eShram Card

What Are The Benefits Of The Assignment Of Life Insurance Policies Program?

The ALIP program offers various benefits to LIC policyholders. Let’s take a look at them.

Quick Payment

Policyholders will get their surrender money within 48 hours after submitting the necessary documents. This is handy for those policyholders who need immediate financial assistance.
Online Documentation

Since the entire process from assigning the policy to receiving the surrender is done online, it is very convenient for policyholders to access the benefits of the ALIP program without extra paperwork.
Reduced Policy Lapses

Many policyholders end up surrendering their LIC policies due to financial constraints. But under this program, policyholders get to keep their life insurance coverage as well as the entire investment amount, therefore preventing lapses and ensuring continuous financial protection.

Read more: Aadhaar Card

Conclusion

The ALIP program offers a really good deal to LIC policyholders as they can surrender their policies without losing any money as well as getting additional life coverage. This program easily addressed the issues and needs of policyholders while making use of the benefits of the policies.

For more information on how to surrender your LIC policies, visit https://www.aceso.in/offerings. If policyholders have any queries or grievances, call +918104475025.91 81 044 7502591 81 044 7502591 81 044 75025

Frequently Asked Questions