How to Surrender and Close Your LIC Jeevan Anand Life Insurance Policy?

by Vinaya HS on January 18, 2011

in Finance

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This post should actually be titled “How I Made LIC Richer by Rs 90,000?”

First, a background on how this Jeevan Anand policy came into my life. :-)

Towards the end of 2004 and in my early twenties, when I was at the peak of committing one financial mistake after the other (taking loans from my employer, charging my credit cards to shop for things that I really didn’t need, failing to save a rupee, etc.), I bought a LIC Jeevan Anand life insurance policy simply to avoid paying income-tax. This policy required me to pay Rs 25,000 each year for 20 years for a life insurance cover of Rs 500,000. I somehow paid the premium for 3 years (2005, 2006, and 2007) and then stopped because it was exactly at that time when I started educating myself about personal finance and discovered the existence of term-plans. Since the policy was now surrender-worthy, I decided to go ahead and surrender it for whatever it was worth.

However, for one reason or the other, I kept putting off surrendering this policy (even after hearing from LIC that I’d need to surrender and close this lapsed policy before I could apply for a term-plan with them). Now, having recently made this resolution, I finally went ahead and surrendered the policy. The lady at the counter informed me that with accrued bonus the value of the policy now stood at Rs 140,000 but if I surrendered the policy I’d only get a far far lesser amount of Rs 50,000. I was indeed tempted for a moment to have the policy revived but I stood by my decision (and my resolution) and asked for the policy to be closed.

So there you go. I paid Rs 25,000 each year for 3 years, am only getting back Rs 50,000 after 6 years, while LIC pockets a cool Rs 90,000 at my expense. And I write a blog on personal finance!

That apart, I thought I’d share with you the procedure for closing such a policy (it’s somewhat similar to what you’ve read before on closing your unit linked life insurance policy).

Procedure to surrender and close your LIC Jeevan Anand Policy.

  • Get the documents listed below into one file:

    1. Original life insurance policy document.
    2. Original premium payment receipts.
    3. Download this surrender request letter, fill-in your specific details, and print a copy.
    4. 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.
    5. Photocopies of #1 and #2 above.

  • Staple together the filled-up surrender request letter, original life insurance policy document, photocopy of premium paid receipts, 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 and original premium paid receipts. 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.


It’s now time to execute the next steps of my strategy.

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.

{ 127 comments… read them below or add one }

Sandeep November 5, 2012 at 7:21 PM

I have following postal life insurance policies. I want to surrender all these policies. Can you tell me the surrender values of these policies?
Policy Monthly Premium Sum Assured Start Date Maturity Date
1 215 100000 Nov 01 Oct 29
2 213 50000 Nov 01 Dec 21
3 1005 300000 Nov 03 Nov 27
4 645 300000 Nov 03 Nov 32
5 430 200000 Nov 03 Nov 32

All monthly premiums for above policies are paid upto October 2012.

subhashish roy January 14, 2013 at 11:07 AM


I have 2 policy of Jeevan Anand for my parents & both the policy are matured last month but the return was less than the premium i paid. So, i do not want to wait now till my parents death to get the rest sum assured.

Pls let me kow, whether i can submit the policy & if yes, How much i can expect.



Ramesh May 7, 2013 at 9:54 AM

I started Jeevan Anand policy in Aug 2009 as a amount of 5 Lac. At this position i can not pay the premium. If i want to stop that policy at this time how much i will get back i paid last premium in aug 2012.

Arvind kumar Dubey May 30, 2013 at 5:45 PM

Dear Friend Jeevan anand is the best plan so don’t close bcos its cover up to 70th of age, premium payment may your selection like 10-21 years, after that it will running without any payment,

So don’t close it,

Arvind kumar Dubey
LIC of INDIA Delhi

navnath shinde May 14, 2013 at 10:51 AM

Respected sir,
my policy no 635318671 i paid only one instolment so i want to surandar my policy what can i do?

Arvind kumar Dubey May 30, 2013 at 5:37 PM

Dear Friend,IT is must to 3 years premium payment for LIC Policy then you will get benefit otherwise value is Zero .Please call me for best advice on 9716618942 Delhi LIC of INDIA

Arvind kumar Dubey May 30, 2013 at 5:40 PM

Please pay premium to get benefit

Ankit June 13, 2013 at 3:01 PM

Hi Arvind

Can you please help me. I have Jeevan Anand policy and I have started on 18/02/2010. I want to surrender the policy. Monthly installment i pay is rs 992/- What is the amount I will get if I surrender the same. (Approx)

Arvind June 13, 2013 at 3:59 PM

Dear Friend,

Don’t close this policy bcoz after maturity date you will get all your amount AND it will run up to 70th of age without any payment & can b receive once again a S.A. Amount at end of life.


Anonymous July 10, 2013 at 1:24 PM

very good,smart person

Ankit June 14, 2013 at 3:58 AM

Ya i understand that Arvind. But what should be the approx amount which i will get if I surrender the policy?

Arvind Kumar Dubey June 18, 2013 at 11:46 AM

Dear Ankit read this comment Arvind Kumar Dubey June 18, 2013 at 11:34 AM

rashmi June 17, 2013 at 5:24 PM

My policy nos. are 254259457/458. I want to surrender these. Started in Feb 2007. How much will I get?

Arvind Kumar Dubey June 18, 2013 at 11:34 AM

IVRS or Integrated Voice Response System is available at all time (247) from most cities and is providing required information to customers. Any customer can contact LIC IVRS by dialling Universal Access Number (UAN) 1251.

For making local call from any MTNL or BSNL number, simply dial 1251 and for other than local users, IVRS can be accessed by dialling the STD code of the IVRS Centre followed by 1251. You can get all the information regarding your policy including the Surrender Value of LIC Policy by this method. click on given link

Or you may visit any of the LIC offices in your area with your Policy number to get the Surrender Value of LIC policy.
You can call me 9716618942 Delhi

amit chavan July 4, 2013 at 11:58 AM

dear sir,

my wife have a LIC policy from last 2 yrs but after my marriage she stop to pay her monthly premium just b;coze of change in resedance location from mumbai to vadodara…

now policy showing laps…can you pls advice shall i re-start or withraw the same…

kindly advice


Arvind kumar Dubey July 4, 2013 at 12:10 PM

Yes,You can re-start your policy again with a late fee of due premium, you can pay your premium online also. For help online click on or call me on 9716618942 Delhi

Kulbir July 22, 2013 at 3:11 PM

This is actually and eye opener for me. I also have two policies from LIC but they were bought 3 years back in month of Feb (peak time to make investments to save some tax). and obviously very immature decision.

Its always better to go for a term policy if you are looking for insurance rather than insurance cum investment plan, and most of us make that mistake when we see those LIC people standing outsite our office near breakout areas :)

I’m gonna get both my policies closed and get one or two good term plans from different vendors and save hell lot of money every year.

There are other ways to safe tax apart from LIC policies that we think are our only saviour.

I loved this blog, very well documented procedure to close LIC policy.

Thanks a ton buddy!!
-Kulbir July 27, 2013 at 12:23 AM

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Nagesh godri August 2, 2013 at 9:54 AM

Respected sir
Can you please help me police no is 958103772 what is surrender value after 5 year police name jeevana anand 165

Abhishek Kumar August 2, 2013 at 11:34 PM

Sir my policy no is 459416187 one mth back i started this money back scheme named as new bima gold but now i want 2 surrender this what i hve 2 do.

HARSHAVARDHAN REDDY August 7, 2013 at 3:54 PM

Dear sir,

I have started policy – Jeevan Anand last year. one year instalment i paid(last year), later i lost my job. i need to surrender this one, or i want to switch over to units plan….kindly advice posibilities????

jay mehta August 9, 2013 at 12:15 PM

my policy no is 883893320 what is the exact amount i will receive after maturity and if i close it now how much amount i will get back

Chanchal Ghatak October 23, 2013 at 4:16 PM

I have 2 policies
one Jeevan Anand opened on 28.03.2009 premium Rs/8250
Two table no.14 opened on 28.12.2010 premium Rs.9950
Now I am 61 yrs old and a re tired person so I am unable to pay year ly premium ,
I wish to surrender my two policies. What amount I got.

Raj October 23, 2013 at 5:17 PM

Hi Kulbir,

Thanks for your ideas about how you got into these LIC policies bcoz of vendors outside your company.

Very first – It shows that you were not mature enough to take the decision and influenced by others.
Second thing – if you are concerned about only the Risk cover then definitely you must go with Term plan. So it’s completely your outlook what exactly you want.

Third thing – Kindly don’t think that LIC is the only “SAVIOUR” – compare the settlement cases of others company with LIC.

Remember that LIC gives what it commits before enrollment and don’t change the terms and conditions later like other companies.

Read the blogs for other companies too.. people shared their views for other companies too how thery are trapped and what is their suffering.

You will come to know who is exactly your “savior”.


AM November 23, 2013 at 2:28 PM

Can a policy that has only one year premium paid be revived by converting it to a lesser sum assured value?

Paul December 2, 2013 at 2:33 PM

How true. After reading your article I called up and found out my surrender value. I have so far payed premiums worth Ra. 16,6464/-. Surrender value is 1,06,000/-. Hard to believe it, but so very true. I want to surrender and get away from paying any further premiums. Hoping to find a good term policy to cover risk.

SONU BHATI December 15, 2013 at 11:53 AM

sir g meina lic ki jeevan aanand police la rakhi hai aur nov 2013 mein 3 year complite ho gya hai mein ab es policy ko surrender karana cahta hu, isliya mujha direction dijiya mein mujha kya karna cahiya aur mara paisa mujha kaisa mil sakta hai

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