Submit policy payout request at your nearest SBI Life Branch
1. Visit your nearest SBI Life Branch
2.Submit the relevant policy payout request form along with the required documents
FAQs about Policy Surrender and Partial Withdrawal – Individual Plans
What does surrendering a life insurance policy mean?
Surrendering a life insurance policy means exiting from the policy before its maturity. It is the voluntary termination of the insurance contract by the policyholder.
What do I (the policy holder) stand to lose if I surrender the policy before maturity?
If you surrender the policy before its maturity, you stand to lose all the benefits associated with the policy; i.e. death benefits and maturity benefits.
Insurance policies are typically designed to give you financial benefits in the long-term. For maximizing your returns from the insurance investment, it is advisable to stay invested for the entire term. Moreover, surrendering a policy now and purchasing a new life insurance policy later is costly.
An alternative to surrendering the policy is partial withdrawal.
What do I receive when I surrender my policy?
On surrendering your policy, you will be paid a Surrender Value. Surrender Value will be as per the surrender clause mentioned in your policy schedule.
For instance, if you surrender your Unit Linked Insurance Plan (ULIP), the Surrender Value will be equal to your Fund Value (after deduction of charges for surrender and TDS as applicable) on the date of surrender.
Can I surrender my Unit Linked Insurance Plan (ULIP) at any time during the policy term and receive a surrender payout?
As per IRDAI guidelines, lock-in period of five years needs to be completed before any payout can be made to the policyholder.
How can I surrender my policy?
To surrender your policy, please visit the nearest SBI Life Branch and submit the duly filled Surrender Request Form.
What are the documents required for surrendering the policy?
You will need to submit the following documents to surrender your policy:
• Surrender Request Form with a recent photograph of the policyholder.
• Original Policy document. In the absence of the original policy document, you will need to get an indemnity bond executed.
• Original Photo ID and Address Proof with one self-attested photocopy.
• Original Bank Passbook / Account Statement which shows recent transactions not older than 1 month, along with one self-attested photocopy or original cancelled cheque with pre-printed name.
• Copy of the policyholder’s Pan Card.
• NRE Remittance letter, if payout needs to be processed into the NRE account.
• If you are an NRI, you can check with the SBI Life office about documents required for taxation purpose.
What is Partial Withdrawal?
Partial Withdrawal is an option that allows you to withdraw a part of your fund value. The rules applicable for partial withdrawal may differ from product to product.
What is the benefit of Partial withdrawal?
If need for liquidity arises, partial withdrawal enables you to fulfil your financial requirement without exiting from the policy. By availing the partial withdrawal facility, you can continue to enjoy the life cover that your insurance policy offers.
What are the documents required for Partial withdrawal?
Documents required for partial withdrawal are the same as those listed under Surrender Request.
What is Free look Cancellation?
Free Look Cancellation is a facility provided to the policyholder to review the terms and conditions of the policy. If the policy holder disagrees with any of those terms and conditions, he or she can return the policy for cancellation, stating the reasons for objection, within the stipulated period from the date of receipt of the policy document.
When does the free look period begin and end?
The Free Look period lasts for 15 days from receipt of the policy document, for policies sourced through any channel other than Distance Marketing. For policies sourced through Distance Marketing, the Free Look period lasts for 30 days from receipt of the policy document.
Are intermittent holidays and non-working days excluded under the stipulated calculation of free look period?
No
If the last day of the Free Look period is a Sunday or a public holiday, will the cancellation request be accepted on the next working day? If yes, how will the NAV be determined?
Yes, the cancellation request will be accepted on the next working day, if the last day of the Free Look period happens to be a Sunday or a public holiday. The NAV of the next working day will be applicable.
What are the documents required for initiating Free Look Cancellation?
You will need to submit the following documents to initiate Free Look Cancellation:
1. Free Look Cancellation Request form.
2. Original Policy Document.
3. Direct Credit mandate. NRE Remittance letter to be submitted, if payout needs to be processed into the NRE account.
4. Cancelled cheque leaf with the name pre-printed name or self-attested pre-printed pass book copy with transaction details not more than six months old.
5. Original First Premium Receipt.
FAQs about Policy Surrender and Partial Withdrawal – Group Plans
What are creditor protection products?
Creditor protection products are products which are taken on the life of a member who has availed of a loan. In case of death of the member, the insurer will pay benefits as defined in the policy terms and conditions.
When can SBI Life – Dhanraksha and SBI Life – RiNn Raksha Policies be surrendered?
These policies can be surrendered any time after one year from the start date of the insurance cover, till expiry of policy term.
What are the documents required for surrender/foreclosure of Group Plans?
You will need to submit the following documents to surrender your Group Plan:
1. Surrender Form.
2. Recommendation from Master Policy Holder.
3. Original COI(Certificate Of Insurance).
4. Direct Credit Mandate and cancelled cheque with pre-printed name. NRE Remittance letter to be submitted, if payout needs to be processed into the NRE account.
What are the documents required for initiating Group Free Look Cancellation?
You will need to submit the following documents to initiate Group Free Look Cancellation:
1. Free Look Cancellation Form
2. Recommendation from Master Policy Holder.
3. Original COI(Certificate Of Insurance).
4. Direct Credit Mandate and cancelled cheque with pre-printed name. NRE Remittance letter to be submitted, if payout needs to be processed into the NRE account.
What are the documents required for Group Cover Cancellation?
1. Cover cancellation form.
2. Recommendation from Master Policy Holder with loan status (can be done only if loan is not availed or closed within 90 days).
3. Original COI(Certificate Of Insurance).
4. Direct Credit Mandate and cancelled cheque with pre-printed name. NRE Remittance letter to be submitted, if payout needs to be processed into the NRE account.
When can Super Suraksha policies be foreclosed?
Super Suraksha policies can be foreclosed upon submission of surrender documents, once the loan is foreclosed.
For SBI Life – RiNn Raksha policies, are Free Look Cancellation and Cover Cancellation the same?
Free Look Cancellation and Cover Cancellation are not the same for SBI Life – RiNn Raksha policies.
• Free Look Cancellation can be done within 15 days from receipt of policy in case you are not satisfied with the terms and conditions of the policy.
Recommendation from Master Policy Holder is required, along with other necessary documents mentioned here. • Cover cancellation can be done on receipt of request from a member within 90 days from issuance of policy, stating that the loan is not availed or that it is closed within 90 days. Recommendation from Master Policy Holder is required, along with other necessary documents mentioned here.
Where can I submit the request for Surrender/Foreclosure/Free Look and Cover Cancellation?
All the above requests can be submitted at the nearest SBI Life Branch, along with the required documents.
Can members continue with their SBI Life – Dhanraksha or SBI Life – RiNn Raksha policy even if they have closed their loan account?
Yes, they can continue with their policy.
Is closure of loan account mandatory in order to surrender the SBI Life – Dhanraksha or SBI Life – RiNn Raksha policy?
No, you can surrender your SBI Life – Dhanraksha or SBI Life – RiNn Raksha policy even without closure of your loan account.
