Cancellation Lic: Easy Method

What is Lic

Definition

Lic (Life Insurance Corporation of India) is the state-owned life insurer that issues life insurance policies across India. It offers a wide range of plans including endowment, term, and ULIPs designed to provide life cover, savings and maturity benefits.

Scope

Lic policies are legally binding insurance contracts governed by the policy document and IRDAI regulations. Cancellation rules differ by how the policy or purchase was made (branch/web/app stores) and by timing (free-look, lock-in, surrender).

How to cancel Lic

Cancel via App Store (iOS)

• Open Settings on your iPhone and tap your Apple ID name.
• Go to Subscriptions, find the LIC in-app purchase, and tap Cancel Subscription.
• Note: LIC’s free-look or surrender provisions do not apply to App Store in-app purchases; follow Apple’s refund and cancellation policies.

Cancel via Google Play Store (Android)

• Open the Google Play Store app, tap your profile, then Payments & subscriptions > Subscriptions.
• Select the LIC app subscription and tap Cancel subscription.
• LIC cannot process Play Store cancellations or refunds for app-based purchases; these are handled by Google Play policies.

Cancel via LIC branch / web / policy documents

• For a new LIC policy issued by branch or online, exercise the statutory free-look within 30 days of receipt of the policy document.
• To surrender a policy after the lock-in period, visit your home branch with required documents and submit a surrender request for processing.
• Contact your LIC branch if you need assistance with forms, signatures, or clarification on deductions and surrender value.

What happens when you cancel

Immediate effects

During the free-look period a cancellation invalidates the policy and ends cover from inception. Any claim benefits cease immediately on cancellation.

Policy status and record

After surrender or cancellation the policy is closed in LIC records. Keep the cancellation acknowledgement and transaction receipts for future reference and dispute resolution.

Renewal and reinstatement

Cancelled policies cannot be renewed; some policies can be reinstated only if LIC permits and subject to underwriting and payment of outstanding premiums and interest.

Will I get a refund?

Free-look period refund

If you cancel within the 30-day free-look, LIC refunds the premium after deducting proportionate risk premium, medical examination costs (if any), and stamp duty. Insurers must process this refund within 7 days.

Surrender after lock-in period

After the mandatory lock-in (generally 2 or more years) a surrender value is payable, typically around 30% of premiums paid for early years, subject to plan terms.

Refund for remaining policy term

In certain cases (for example short-term policies or where IRDAI rules apply) a pro‑rata refund of unexpired premium may be required. This depends on product terms and regulatory conditions and may require insurer discretion and notice.

Lic plans and pricing

Pricing summary

The table below shows sample premium illustrations from LIC plan examples and third‑party calculators. Premiums vary by age, term, sum assured, health and mode of payment.

Notes on samples

The prices are illustrative samples drawn from published examples and calculators covering 2024 - 2025. For exact premium quotes contact LIC or use the official LIC premium calculator.

Your consumer rights in India

Free-look right

You have a statutory right to return a newly issued LIC policy within 30 days of receipt and receive a refund after permitted deductions. This period was extended from 15 days by IRDAI.

Surrender value and lock-in

Surrender values are payable after the lock-in period (commonly after 2 years) and are governed by policy terms. There is generally no refund during the first year.

Grievance and escalation

If dissatisfied you can escalate to the insurer’s grievance cell, file a complaint with IRDAI’s grievance redressal, or approach the Insurance Ombudsman or consumer courts for unresolved disputes.

Customer experiences

Positive experiences

• Some policyholders report prompt processing of survival benefit and maturity claims when branch staff acted quickly.
• Remote document uploads have enabled smooth claim settlement in several reported cases.

Negative experiences

• Customers report app/site issues such as slow or failed OTPs and login problems that complicate online tasks.
• Surrender procedures can be time-consuming, require home branch visits, and produce lower-than-expected surrender values (around ~30% early on).
• Complaints exist about mis-selling and agent pressure for certain products with long lock-in and modest returns.

Documentation checklist

Documents for free-look cancellation

• Original policy document (policy bond) or electronic copy of the policy schedule.
• A written request or free-look cancellation letter signed by the policyholder.

Documents for surrender or closure

• Original policy document, KYC/identity proof, and address proof.
• Bank account details and cancelled cheque or bank mandate for refund credit.
• Filled surrender/discharge form as provided by the LIC branch and nominee signatures if applicable.

Common mistakes

Wrong cancellation route

Attempting to cancel an in-app purchase via LIC branch rather than through Apple or Google leads to delays. For app-store purchases use the respective store account.

Expecting full refunds early

Many policyholders expect full refunds on surrender within early years. Policies often carry heavy deductions initially; surrender value is typically low in the first few years.

Not using the home branch

Trying to process surrender at a non-home branch or without required KYC can cause repeated trips and delays. Update records before requesting closure if possible.

Comparative recap

Methods compared

The table below summarizes common cancellation routes, refund likelihood, and key notes to choose the correct process for your situation.

How to decide

Use the method that matches how you purchased the policy (App Store, Play Store, branch/web). For contractual policy cancellations rely on LIC branch procedures and free-look rules.

After cancelling

Immediate actions

Obtain written acknowledgement of cancellation and any refund transaction reference. Keep copies of all documents and communication for record and possible escalation.

Follow-up and alternatives

If you still need life cover, compare alternatives before buying again. If refund is delayed or disputed, escalate to LIC grievance cell or IRDAI grievance redressal channels.

Address

Central Office

Life Insurance Corporation of India, Central Office, 'Yogakshema', Jeevan Bima Marg, Nariman Point, Mumbai 400021, India.

Branch locator

For branch-level cancellation and surrender procedures contact your LIC home branch directly or visit the LIC branch nearest you for in-person assistance.