LIC Policy Maturity Claim: An Overview
A life insurance policy is a must-have for every individual, especially when you are the single bread earner of the family to financially protect your family in case of your demise. When you buy an insurance policy, you get insured by the insurance company to obtain death benefits by paying a premium amount to the insurance company every month. In this article, we will learn about LIC maturity, how to claim LIC policy online, how to check the LIC policy maturity claim and the documents required for LIC maturity claim online.
Key Takeaways
- LIC maturity claim is the final settlement of the policy in which the policyholder receives the maturity amount.
- LIC allows its customers to claim policies online through its portal.
- The policyholder can submit their documents online through the LIC portal instead of physically submitting them once they have met their premium obligations.
How to File Maturity Claim for LIC Policy?
LIC policies are offered by the earliest insurance company in India LIC (Life Insurance Corporation Of India). When it comes to buying insurance, Indian customers turn towards LIC as they are a well-reputed insurance company in the market. They offer a wide range of plans that includes retirement plans, term insurance plans, endowment plans, ULIPs and money-back plans that suit the requirements of different customers. Term insurance plans offer death benefits for a fixed number of years whereas other plans offer death benefits along with maturity benefits to the policyholders. The policyholder has to file for LIC maturity claim to receive the insurance sum assured.
If you are filing for a death claim, you have to go through comprehensive paperwork and the nominee is required to submit documents proof of his/her relationship with the policyholder or insured along with other related documents to process the claim process.
The policyholders will receive a discharge form from the insurance company one month before the maturity date. The discharge form has to be filled out by the policyholder and sent back to the insurance company along with other required documents. However, you need to keep in mind that the policyholder must have paid all the premiums to be eligible for the LIC maturity claim and in case the policy lapsed because of not paying a premium, the policyholder will not be eligible to receive the maturity benefit.
Documents Required for LIC Policy Maturity Claim
The policyholder is required to send the discharge form along with the required documents to process the LIC maturity claim. These documents are required to be submitted before 7 days of the maturity date to the insurance company to ease the process of LIC maturity claim or settlement process.
- The original document of the policy
- Photocopy of address proof such as driving license or Aadhar card
- Information regarding any assignment or reassignment
- NEFT mandate with the bank details
- Photocopy of the identity proof such as Aadhar card
- Photocopy of age proof
- Photocopy of the policyholder’s bank account passbook
LIC Maturity Claim: Settlement Process
It is advised that the policyholder should visit the LIC branch instead of sending the documents via post to ease the settlement process, then the insurance company will start the document verification. Once the documents are verified, the insurance company will give the maturity benefit to the policyholder by crediting the total amount to his/her bank account. For money-back policies, in case the policy amount is less than INR 60,000, no need to provide any discharge form to the insurance company because the insurance company will send the maturity amount directly to the policyholder’s bank account on the maturity date. However, the policyholder whose policy amount is more than INR 60,000, has to file the discharge form for a LIC maturity claim.
Feature Alert: Avail a Term Insurance Plan in a few simple steps here.
Protect yourself and your family with the help of Goal Based Planning from INDmoney. Seldom do we keep track of the extent of insurance protection available for our families. Do all this and a lot more with INDmoney. Check if your life insurance plan matches your life goals here.
To conclude, life insurance protects you from the uncertainties of life and helps you to overcome financial difficulties. However, you should opt for sufficient life coverage that will be enough to fulfill the needs of your family. You need to consider a few things such as income, age, estimated working years, financial liabilities and future plans before purchasing life insurance. So, do your proper research and find the right insurance policy that suits your requirements.
How to claim LIC policy online?
The policyholder receives a maturity claim notification two months before the maturity date from the servicing branch and the policyholder is required to submit the discharged receipt in a form called Form No.3825 along with the policy documents one month before the due date.
How can I get a maturity discharge form?
The policyholder receives a maturity discharge form one month before the maturity date of the insurance policy from the LIC.
What happens after the completion of the tenure of my LIC policy?
You need to submit the documents one month before the maturity date to the insurance company, then the insurance company will process the document for verification and once it is done, they will pay the maturity amount to the policyholder.
Is the LIC policy maturity claim taxable?
Yes, you will have to pay tax if the life insurance premium is more than 10% for those policies issued after 1st April 2012 or 20% of the sum assured for those policies issued prior to 1st April 2012, as the case may be.