No, the Life Insurance Corporation (LIC) will not refund the full policy amount if only half of the premium has been paid and the balance is not paid in between.
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| Life insurance corporation |
What happens if you dont pay your whole life insurance policy?
The amount that can be refunded is called the surrender value, and it is calculated based on the premiums that have been paid and the length of time the policy has been in force. The surrender value will be lower than the full policy amount, and it may also be subject to a surrender charge.
The amount of the surrender value will depend on the specific policy terms and conditions, but it is generally around 30% of the premiums that have been paid. For example, if you have paid $10,000 in premiums on a policy and then surrender the policy after 3 years, you may be able to get a surrender value of $3,000.
If you are considering surrendering your LIC policy, it is important to carefully review the policy terms and conditions to understand how much of the policy amount you will be able to get back. You should also consider the surrender charge, which is a fee that LIC may charge if you surrender your policy before it matures.
Here are some additional things to keep in mind about surrendering your LIC policy:
You will not be able to get back any of the premiums that you have already paid.You may have to pay a surrender charge.The surrender value will be lower than the full policy amount.You will no longer have any life insurance coverage.
If you are considering surrendering your LIC policy, it is important to weigh the pros and cons carefully. You should also talk to a financial advisor to get personalized advice.