FAQ on Policy Surrender and Partial Withdrawal for Life Policies
Would you like to surrender your life insurance policy, or make a partial withdrawal from your policy fund, but don’t know how? Read this FAQ to know all about policy surrender, partial withdrawal and the procedure for each.
Q1. Where should you submit the form for policy surrender?
At the Bajaj Allianz branch office nearest to you.
Q2. What are the documents you need to submit for policy surrender?
- Policy surrender form
- Policy bond
- A self-attested copy of your ID proof
- Any cancelled cheque/bank attested bank statement/bank attested passbook copy.
Q3. How long does it take for a surrender to be processed?
After the surrender request is submitted the customer gets a confirmation call for the payout. If the customer prefers a cheque payout, the process takes 8-10 days. If the customer prefers a direct credit payout, the process takes 7-8 days.
Q4. Exactly what is meant by ‘partial withdrawal?’
If the customer partially withdraws some of the amount from the policy fund value, it is known as ‘partial withdrawal.’
Q5. How long must a policy be in effect before it can be surrendered?
A policy can be surrendered only after the lock-in period is over. For policies issued on or before 31 August 2010, the lock-in period is 3 years. For policies issued on or after 1 September 2010, the lock-in period is 5 years.
Q6. When is it advisable to surrender a policy? Should a customer surrender it as soon as the minimum policy period expires, or should they wait a while longer?
The best option is to not surrender the policy at all and enjoy maximum returns from it. But if a customer is determined to surrender their policy, it is generally advisable that they should wait for a longer period before surrendering it, as this will ensure that they get better returns.
Q7. On which section of the website can you do a partial surrender?
Under the Policy Profile section, using your O-pin number, you can start the procedure for a partial withdrawal.
Q8. What is the procedure for submitting a partial withdrawal request on the website?
When you log in to your policy profile, in the Service Request column, the option to go for a partial withdrawal is given. When you log in to this option with your O-pin, the system will show the minimum and maximum amounts which you can withdraw. You just have to enter your desired withdrawal amount and submit the request.