Surrender Aditya Birla Life Insurance Policy
Every insurance policy comes with a fixed tenure, during which the insured needs to pay the premium regularly, as per the terms and conditions of the policy. There may be situations where the insured wishes to terminate the policy due to various reasons such as financial crunch, plans of investment with other policies, etc. When the insured person exists from an insurance policy before its maturity, the insurance company may choose to pay a specific sum to the insured as per the terms of the policy, which is called the surrender value of a life insurance policy. This is the accumulated component of the policy until the termination happens.
Aditya Birla Life Insurance Company also offers the surrender value to the customer who has surrendered the policy only if he/she has met the terms and conditions of the company. in that case, the insured person will be entitled to get Guaranteed Surrender Value and Special Surrender Value (if any) that depends on the assured sum, the number of premiums paid, the policy term, any bonus received, and the surrender value factor. Today we are going to talk about the process of surrendering an Aditya Birla Life Insurance Policy in detail. Have a look.
Process of Surrendering an Aditya Birla Life Insurance Policy
If the insured person wants to surrender his/her life insurance policy, the following procedures need to be followed:
Reason(s) for the surrender of the policy, along with the surrender form, need to be submitted to the nearest official branch of Aditya Birla Sun Life Insurance. This surrender form can be downloaded online from the official website of the company. Else, one can also get it from any of the branches of Aditya Birla. Apart from these, the following documents have to be submitted as well:
- Original policy documents
- Canceled cheque with the policyholder’s name on it
- In case the canceled cheque does not have a pre-printed name or account number, or a new account is mentioned on the cheque, then the passbook copy/bank statement having the pre-printed name and the account number is required
- Valid ID proof (PAN Card, Aadhaar Card, Passport, Driving License, Voters ID)
- Policy surrender or cancellation form
- Latest contact details
- NRE bank statement reflecting any premiums paid from the NRE account
Once that’s done, the policy will be surrendered.
Should You Surrender an Aditya Birla Life Insurance Policy Before Maturity?
Even if Aditya Birla Life Insurance Company provides the policyholders with the option to surrender the policy before maturity, it would be advisable to refrain from policy termination unnecessarily. Apart from losing the tax and insurance benefits, the money one receives on surrendering the policy is lesser than the amount invested. Hence it is not advisable to terminate the insurance policy unless it is unavoidable. The insurance products of Aditya Birla have come up with multiple benefits, including tax saving, life coverage, and investment opportunity if it is an endowment policy, a ULIP, or other investment-focused life insurance plans. One must try his/her best to stay invested in the policy throughout its tenure to avail of maximum benefits rather than surrendering.