How to Cancel LIC Policy Online

Canceling an LIC policy is possible, but the process depends on whether you are still within the free look period or if your policy has already been active for several years. In this guide, we’ll explain everything in detail, including:

• What it means to cancel an LIC policy
  
  
• Free look period cancellation explained
  
  
• How to cancel LIC policy online after 3 years (surrender process)
  
  
• Documents needed for online cancellation
  
  
• Refund and surrender value details
  
  
• Things to consider before canceling
  
  
• Alternatives to cancelation
  
  
• FAQs about LIC policy termination

If you are trying to cut down on digital services as well, here’s our complete guide on how to cancel Sony LIV subscription

By the end of this blog, you’ll clearly understand how to cancel LIC policy online step by step.

Why Do People Cancel LIC Policies?

Many people invest in LIC policies but later search for how to cancel LIC policy online because their needs or circumstances change. Here are some common reasons:

• High Premiums: Regular premium payments may feel like a burden over time.
  
  
• Better Options Available: Other investment tools like mutual funds or ULIPs may look more attractive.
  
  
• Immediate Cash Requirement: Some people cancel policies to arrange urgent funds.
  
  
• Not Matching Financial Goals: After a few years, policyholders realize the plan doesn’t align with their goals.
  
  
• Multiple Policies: People often buy multiple insurance plans and later decide to discontinue a few.
  
  

Whatever the reason, LIC allows cancellation through a structured online process.

Can You Cancel LIC Policy Anytime?

Before you learn how to cancel LIC policy online, you must understand when cancellation is possible:

1. Free Look Period (15–30 days):
   If you cancel within the free look period, you can get a full refund of your premium (after deducting minimal charges like stamp duty).
   
   
2. After Free Look Period:
   You cannot simply cancel. Instead, you have two choices:
   
   
   
   • Surrender Policy (after paying at least 3 years of premiums).
     
     
   • Make Policy Paid-Up (stop paying, but continue with reduced benefits).
     
     

Step-by-Step: How to Cancel LIC Policy Online

The process of how to cancel LIC policy online differs slightly depending on when you cancel.

1. Cancel LIC Policy During Free Look Period

If you decide quickly that the policy is not right for you, you can cancel within the free look window.

Steps:

1. Visit the LIC official website (licindia.in).
   
   
2. Log in to your account through the Customer Portal.
   
   
3. Go to Service Request → Free Look Cancellation.
   
   
4. Fill in the cancellation form with details like policy number and reason.
   
   
5. Upload documents:
   
   
   
   • Original policy bond (scanned copy)
     
     
   • ID proof
     
     
   • Cancelled cheque for refund
     
     
6. Submit the request.
   
   

LIC will process the cancellation and refund the premium amount within a few days.

2. How to Cancel LIC Policy Online After 3 Years (Surrender)

If you are beyond the free look period, you need to surrender the policy. This is the most common query when people search for how to cancel LIC policy online.

Steps:

1. Login to the LIC e-Services portal.
   
   
2. Go to your policy dashboard and select the policy you want to surrender.
   
   
3. Click on Policy Surrender Request.
   
   
4. Fill out the online surrender form and mention the reason.
   
   
5. Upload documents:
   
   
   
   • Original LIC policy document (scanned)
     
     
   • Identity proof (Aadhaar, PAN, etc.)
     
     
   • Address proof
     
     
   • Cancelled cheque / bank details for refund
     
     
   • Passport-size photograph
     
     
6. Submit the request.
   
   

After verification, LIC will calculate the surrender value and transfer the refund to your bank account.

What is Surrender Value in LIC?

When people ask how to cancel LIC policy online, they often want to know how much money they’ll get back. This is where surrender value comes in.

• Surrender Value = (Total Premiums Paid – First Year Premium – Charges) + Bonuses (if any).
  
  
• You can surrender a policy only after paying 3 years of premiums.
  
  
• If you cancel early, the surrender value will be very low.
  
  
• The longer you keep paying premiums, the better surrender value you’ll receive.
  
  

Example: If you have paid ₹1,00,000 premiums in total and your first year’s premium was ₹20,000, your surrender value might be around ₹60,000–₹70,000 depending on bonuses and deductions.

Documents Required for Online Cancellation

To complete how to cancel LIC policy online, you’ll need:

• Original LIC policy bond (scanned copy)
  
  
• Free Look or Surrender form (available on LIC website)
  
  
• Identity proof (Aadhaar, PAN, Passport, Voter ID)
  
  
• Address proof
  
  
• Cancelled cheque or bank passbook copy
  
  
• Passport-size photograph
  
  

Refund Timeline After Cancelling LIC Policy Online

• Free Look Cancellation: Refund usually within 7–10 working days.
  
  
• Surrender Refund: Takes 10–15 working days depending on processing.
  
  

Things to Consider Before Canceling

Canceling a policy is a serious step. Before using how to cancel LIC policy online, think about:

1. Loss of Insurance Cover: You may remain uninsured.
   
   
2. Financial Loss: Surrendering early usually means losing a part of your money.
   
   
3. Tax Benefits: You’ll lose deductions under Section 80C.
   
   
4. Future Security: LIC policies provide financial protection in emergencies.
   
   

Alternatives to Canceling LIC Policy

If you are unsure about how to cancel LIC policy online, explore these options:

• Make the policy paid-up: Stop premiums, but get reduced maturity benefit.
  
  
• Take a loan against the policy: LIC allows you to borrow against your policy instead of surrendering it.
  
  
• Switch to another plan: Consult LIC agents to see if you can change plans instead of canceling.
  
  

FAQs on How to Cancel LIC Policy Online

Q1. Can I cancel LIC policy anytime?
‍

You can cancel within the free look period. After that, you must surrender after 3 years.

Q2. How much refund will I get if I cancel?
‍

You’ll get the surrender value, not the full premium refund.

Q3. Can I cancel LIC policy online without visiting the branch?
‍

Yes, you can use the LIC portal to submit cancellation requests.

Q4. What is the free look period in LIC?
‍

It is 15 days (30 days for online policies) where you can cancel and get a refund.

Q5. Can I get my premium back if I cancel after 1 year?
‍

No. Refunds are only after 3 years when surrender value becomes applicable.

Final Thoughts

Canceling an insurance policy is a big decision. But if you’ve decided, now you know exactly how to cancel LIC policy online. Whether you’re within the free look period or surrendering after a few years, the process is simple if you follow the right steps.

Canceling an insurance policy is a big decision. But if you’ve decided, now you know exactly how to cancel LIC policy online. Whether you’re within the free look period or surrendering after a few years, the process is simple if you follow the right steps.

For official instructions, visit the LIC customer portal.

Always remember: once you cancel, you lose both insurance cover and certain tax benefits. So, think carefully and consider alternatives like making the policy paid-up or taking a loan. But if cancellation is the right choice for you, the LIC online portal makes it convenient.