A life insurance policy not only secures the financial future of the insured’s family but also helps vastly in dire situations like debt. An insurance company lays down certain rules and regulations that policy buyers are expected to follow when purchasing an insurance policy. However, once the policy has been purchased, one may find certain discrepancies that one may want to change. These discrepancies are called alterations.
Alterations in LIC policy can be requested by the relevant policyholder after the purchase of the policy. However, insurance companies typically lay down certain guidelines that one needs to abide by.
A policy might not be deemed suitable to the policyholder for multiple reasons, as a result of which he/she might want to alter or modify the same. LIC encompasses different types of policy alterations, however, any modification request made during the first year of the purchase of the policy will not be accepted.
Types of Alterations in LIC Policy:
- Alteration in class
- Alteration in term
- Lowering the sum assured amount
- Alteration of the premium payment mode
- Subtracting additional premium
- Switching to a with-profit plan from a without-profit plan
- Alteration of the policyholder’s name
- Correction in the holding policies
- Option for settlement of sum assured through installments
- Accident benefit grant
- Premium waiver benefit grant
- Currency alteration and place of payment
What are the Necessary Documents for LIC Policy Alteration?
The following supporting documents may be asked for in case of a policy alteration:
- A letter justifying your need to alter the existing policy
- Quotation fee and receipt
- LIC policy document - the original copy
- Declaration of Health (only if asked for)
What are Some of the Other Policy Alteration Conditions?
Apart from the types of alterations in LIC policy mentioned above, one can also glance through the following to get a better understanding of its scope:
- In case of a lost policy: In the case of a policy that is lost due to natural causes like flood, fire, etc., or one that is untraceable because of unknown reasons, the policyholder will be required to contact the servicing branch of LIC and apply for a duplicate policy. Typically, through a very simple process, one can easily obtain a duplicate policy in no time.
- In case of change in residential address: If the policyholder moves to a different city or a new house, LIC needs to be intimated about the new alteration. This is done so that the policyholder never misses out any service that LIC might be offering at that point of time. Critical information about premium notices, survival benefits, and so on might not reach the policyholder on time. LIC typically provides services of changing existing addresses, contact information, email ID, and so on.
- In case of change of age: The age factor plays a crucial role in determining one’s premium amount. Therefore, it is very important to double-check the age while purchasing the policy. However, if there is any discrepancy found after the purchase, one can simply send an attested copy of the original birth certificate to LIC officials.
- In case of inclusion or alteration of nominee: Nominations play an integral role in the sector of life insurance. Therefore, including one in an LIC policy is of utmost importance. One is free to update the nomination section anytime during the lifespan of the policy. In case, the policyholder has not included any nominee at all, it is advisable they do so at the earliest.
LIC usually charges a certain fee known as quotation fee for the process of alteration of policy. Other than that, no additional fee is charged to carry out the procedure.
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