How to surrender your endowment or money-back life insurance policy

Are you sure you have an endowment or a money-back plan? Or is it a ULIP? Before we get into the step-by-step process of surrendering your life insurance policy, let us ensure we understand what kind of insurance policy you own. This is an essential step because different policies have different surrender processes. What we recommend Of the three types of life insurance policies, term plans are the BEST! If you have a term plan, stick with it. But please note there are a few term plans that promise to return the premium amount at the end of the policy. However, such plans are usually expensive and should be avoided. But if you have a ULIP or an endowment/traditional/money-back policy plan and want to discontinue your relationship, here's what you need to do. (For those who have a ULIP, please visit this page). Surrendering process of endowment/money-back policy These policies usually have a two- or three-year lock-in period. Confirm your policy's lock-in period by reading the 'Surrender' clause. It will be mentioned in the fine print of your policy document. Surrendering your policy during the lock-in period In most cases, if you discontinue paying your premium before completing the lock-in period, you will not receive any money from the insurance company. In some cases, the policy may get converted into a paid-up policy. This option is available even after compl

This article was originally published on December 22, 2022.