How to Surrender and Close Your LIC Unit Linked Life Insurance Policy (ULIP)?

by Vinaya HS on January 1, 2011

in Finance

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First of all: Wishing you and your family a financially prosperous 2011.

And what better a way to start 2011 than knowing how to get rid of your Unit Linked Life Insurance Policy (ULIP). I recently closed one, on D’s behalf, and luckily for us we emerged above water on that one.

It all started over three years ago (even before I met D) when an insurance agent sold LIC’s Money Plus ULIP as a tax-saving tool. The premium was Rs 30,000 per year for 20 years for a basic life insurance cover of Rs 300,000 with an additional accident cover of Rs 300,000! Since two premiums had already been paid and the policy was way under water, I advised her that there was no choice but to pay the third premium and wait for the third-year to get over before we could surrender the policy and hope to get something back.

Once the third-year was up (in June, 2010) and the policy became surrender-able, we tracked it’s surrender value (= NAV x Number of Units Allotted) quite frequently. Our Rs 90,000 invested was even down to Rs 70,000 at one point. Luckily, our capital markets went up and we managed to surrender the policy at a small profit.

Thought I’d share the procedure on how to surrender and close your LIC ULIP. Here’s what you need to do.

Procedure to surrender and close your LIC ULIP.

  • Get the documents listed below into one file:

    1. Original life insurance policy document.
    2. Original premium payment receipts.
    3. Latest unit balance statement (you get this by post after each premium payment).
    4. Download this surrender request letter, fill-in your specific details, and print a copy.
    5. Get a copy of the S.V. Application and Form No. 3510/5074 either from your agent or from a nearby LIC office and fill it up.
    6. Photocopies of #1, #2, and #3 above.

  • Staple together the filled-up surrender request letter, original life insurance policy document, photocopy of premium paid receipts, photocopy of latest units allotted statement, S.V. Application and Form No. 3510/5074 in that order. Let’s call this as our “Submission Packet.” This set of documents is what you’ll need to submit at the LIC Branch Office from where your policy was issued (you cannot submit them at any other branch office).

  • Staple together the photocopy of the policy document, original premium paid receipts, and original units allotted statement. Let’s call this as our “Reference Packet.”

  • Go to the branch office from where your policy was issued and handover the “Submission Packet” at the counter. Once your policy details are verified, the person at the counter will print and sign an acknowledgment receipt. Verify the details on this receipt and attach it to your “Reference Packet.”

  • Wait for the check to reach you by post.

  • Once the check arrives, verify your name and account number for correctness and take a photocopy. Attach this photocopy to your “Reference Packet.”

  • Deposit the check at your bank.

  • Once the check is credited to your account, tear-up your “Reference Packet” if you feel like doing so.

I did. Here’s pictorial evidence.


Thanks for reading this article. I'd love to hear your opinion. Please use the comments section below to share your thoughts. I frequently write new articles that also cover several other aspects of personal finance including credit cards, financial goals, health insurance, income tax, life insurance, mutual funds, retirement planning, and much more. You can Subscribe through Email and receive new articles directly in your Inbox or you can Subscribe through the RSS Feed and receive new articles in your feed reader.

{ 36 comments… read them below or add one }

Anonymous January 2, 2011 at 8:19 PM

Hi Vinaya,
Upauktha blog…
I also have a Money-Plus LIC policy and the 3rd premium around 10K every year is due in March. How do you check the current value of your NAV? please update…
Keep the blogs flowing in 2011…
Also reply to my mail when u can make some time…

SAJU.PA May 13, 2013 at 2:32 PM


Wali June 13, 2011 at 12:05 PM

I was lucky to make some profit on Money plus… But i did some more mistakes as in taking Jeevan Anand(6 years back) and Life time gold (4 years back) .

Now today i m going to break the shackles and get rid of everything!

Naveen July 28, 2011 at 12:12 PM

You can check the no. of units allocated to your policy and the current NAV on LIC’s website by logging onto the it and enrolling your policy (you need to register for by submitting a form at your LIC branch). So once you know no. of units allocated and current NAV, surrender value=no. of units X Current NAV.

Thanks for this excellent guideline regarding surrendering policy.

Vinaya H S July 28, 2011 at 12:52 PM


Glad to be of help. :-)

Shivani August 10, 2011 at 10:55 AM

very useful information

gauri August 10, 2011 at 2:22 PM

thank you so much for this useful information my lic agent is really useless he was not redy to help me on this… thanks for this valueable information :)

guest September 6, 2011 at 7:12 AM

very useful vinay thankyou… it really helps

guest September 6, 2011 at 7:14 AM

i do have one more doubt vinay… now i have completed 3yrs of paying premium… and i have paid the 4th yr premium as well just last month… is it advisable to take/surrender the amount now or later… any guess on how market would look like…..

Vinaya H S September 6, 2011 at 10:20 AM


Which policy do you have and what’s the term that you’ve take it for? What’s the annual premium that you’re paying?

Nirmal October 20, 2011 at 10:26 AM

Hi Vinaya,

I am having LIC Market Plus (Plan 181) and now going to pay 5th premium in March 2012. My term is for 11 years. I have registered in LIC website long back and enrolled this policy details with other policies of mine. But, as per your eariler comment, I tried to check for my NAV and couldn’t see the link for the same. Kindly advice what should I do to see the link. Kindly please give ur email id to correspond further. Also I wanted to close this ULIP and thinking for investing into VPF.

Thank you


arun October 26, 2011 at 11:09 AM

Hi sir,
I have a future plus (172) single premium policy which was taken back in 2005. Now I would like to surrender it. There is no allocation units mentioned nor is there any maturity value in the policy document. All I know is the current NAV (
I had invested 1 Lack . What would be todays surrender value?

The agent apparently is not in business anymore and I cannot register with lic website, as it keeps saying wrong information !!!

Also I had relocated to a different city. Can I surrender the policy at the office here or do i have to go to the original lic office?

Thanks in advance.

PS: Planning to do the same thing you did with the papers after money credited :P

satish January 3, 2012 at 8:31 PM

thanks for your excellent guidance. thank you very much for all the pain you have taken in explaining this

Anonymous February 3, 2012 at 3:02 PM

Thanks for the guidelines. it is really helpful!!

Prashant Patil February 9, 2012 at 10:41 PM

Very very useful information… Thanks for sharing with us.

Senthilkumar February 15, 2012 at 2:12 AM

Good information

Rashmi February 16, 2012 at 4:00 PM

Vinaya, thanks a lot for sharing this info.
I truely beleive that the LIC policies are big waste of investment.
I had invested in Komal Jeevan, but lately after some calculations, I realised that the money back given by LIC after maturity would be at the interest of just 2-3 % per annum….. thats very very low. It would be better to invest in NSC/PPF (7.5-9% per annum). Do not go to LIC for Investment, if you require Life Insurance then LIC can be thought of.
After apying 3 premiums I am now going to surrender my Policy.

Sai Srinivas K February 20, 2012 at 11:05 AM

Vinaya, Thanks for sharing the information.
I have one more query….
is it mandatory to close the policy at the same branch where we opened?
I opened LIC ULIP Money Plus in Pune and 3 years back and now i am in Hyderabad and want to close this.

MOHAMMED ZAKIR ALI February 27, 2012 at 2:48 PM

I have surrendered the Money Plus policy bearing no.602658566, but even after lapse of one week, I could not receive the policy amount or any response from the concerned LIC officials. Kindly do in the said regard.

Manoj Suri April 9, 2012 at 1:38 PM

Thanks for the valuable suggestion.

Please confim one more thing.

The date of submission of docs date NAV value will be considered or it is flexible i.e. we have fill all the details & we confirm the date later to that LIC office at which date NAV cost is high.

Manoj Suri

Vinaya HS April 9, 2012 at 8:33 PM

@Manoj Suri –

Unfortunately, you don’t get to make that choice. :-) The NAV on the date of submission (or at best the next day’s NAV) is what you’d get.

jas July 26, 2012 at 9:23 PM

thanks very much. i also wanted to close this ASAP. Nice explanation.

Manish August 16, 2012 at 9:51 PM

If I don’t have the following 2 and 3, then from where can I get the duplicates (I have profit plus which I want to surrender and currently I am not staying in same city from where I have taken this policy.)

2.Original premium payment receipts. [I think, I can get it from online, as I have registered on lic.]
3.Latest unit balance statement (you get this by post after each premium payment).

Also, Point no 3 is not received by my any time in last five years.

Please guide me what to do in that case..

sandeep bhandari August 30, 2012 at 4:59 PM

sir thank’s a lot for sharing above information really great needful if
you help me sir, i m apply for surrender through lic agent, he only ask m for sign and address but other requirement like bank details or other, and sir i m not yet received my cheque, sir i it is k or any mischief by agent
”sir it talk is before 20 days”
sir please do need full and reply me please as soon as posible……lease

ramesh September 29, 2012 at 12:33 PM

What should I fill in place of Name and address of paying authority, present badge no and department number etc? Should it be left blank?

Mamatha January 4, 2013 at 12:54 PM

I have completed 4 years in this policy. Are surrender values of LIC Money plans 1 taxable after 3 years ?

jyothi.N January 9, 2013 at 11:26 AM

hi, i am jyothi.N from mysore. i having a money plus policy since 2007 now i completed 6 years. but now i want to surrend the policy so i want some suggestion from u.
thanking you,

Nagendra January 11, 2013 at 5:21 PM

Jyothi, It is important for you to mention the type of fund. I assume it is growth fund. You have already completed more than 3 years of lock-in period. This is definitely the time for you to surrender your policy (as the Sensex is above 19650). If you want to continue, please switch your growth fund to bond fund or some other type. Please do not keep continuing in growth fund, as it may collapse any time. In that case you will lose whatever you will be able to get presently. I am sure you have learned the lesson hard way about all these bogus-ULIP-nonsense. So be careful in the future. Always remember to separate insurance (i.e., Only TERM INSURANCE) and pure investments (like PPF, FD, and mutual funds).

Anonymous January 14, 2013 at 8:00 AM

hi sir.I have a LIC wealth plus policy term8years.I paid all 3 premium of 30,000rs 90, units 8135.367 and nav 10.4951.i want to withdraw.what will be net amt of my pls.

md haji May 3, 2013 at 5:03 PM

hi, i am md haji from bangalore. i having a money plus policy since 2008 now i completed 6 years. but now i want to surrend the policy so i want some suggestion from u.
thanking you,

Godavarthi Srinivas chowdary May 6, 2013 at 9:31 PM

My reply of above all questions. from 2012 Lic payments paid through NEFT/RTGS only. Payment directly credited your bank account. only cheques issued without bank account holders. they will take your bank account details i.e. Bank Account No., Branch address, IFSC code of Bank and also take your latest mobile Numbers for messages alerts i.e, instalments , payments, how many units alloted (this items you want, you will give a request letter in your lic branch office). if u don’t receive units allotment letter, u go and ask your Lic office or nearest lic office in enquiry counter copy of present units letter they give u (Give your LIC Number) or tell you about present NAV & Units. and important question is number of people given one address, after changing house they don’t enter present address. Due to this reason don’t receive cheques, units letters etc., so, please go and change your address, latest mobile nos, and ask any pending check matters in your lic office.

Godavarthi Srinivas chowdary May 6, 2013 at 10:16 PM

2) present any person surrender his/her ulip policies, Submit below items.
A. Request letter (policy close letter) , typing or hand writing your choice.
B. Surrender LIC Form ( given by any LIC Office), sign on 1/- Revenue stamp and also
witness sign by your lic agent or any known lic agent for witness.
C. Your Bank account details form fill and sign and also give your mobile number
(this application form will given by LIC office).
D. Your Bank passbook photostat copy (Bank account details with IFSC Code) or ur
present Cheque Leaf ( Cross cancel must on your cheque, best is passbook copy).

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bala November 1, 2013 at 12:22 AM

somebody post sample filled up surrender form

V UMAMAHESWARARAO November 1, 2013 at 10:31 AM


b November 2, 2013 at 5:16 PM

If I surrender mutual fund linked policy on saturday which NAV will I get, whether of Friday or of Monday.

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