How Can You Cancel The SBI Life Insurance Policy?

A life insurance plan is essential to protect your financial security. However, due to certain reasons, you may want to discontinue the life insurance policy you purchased. If you are looking for ways on how to cancel an insurance policy, let us assure you that it is just a call away to your insurance company. You may even choose to avoid paying all the future premium payments to cancel the insurance policy. However, the effect of cancellation varies based on the duration of the policy and the type of insurance policy that you may have taken. Also, it is necessary to pay close attention to the life insurance policy cancellation rules as it is where you will find the dos and don’ts of the various terms framed by the insurer on cancellation or surrender of the policy.

Priya Sehgal is a website developer with an IT MNC. As a fresher, she is still learning the right methodology to invest her salary in various avenues. On the advice of her colleagues, she purchased a ULIP plan for a yearly premium of Rs. 75,000. Having submitted the documents and made the first-year payment in full, she received the policy document within the next few days. But she was not comfortable with a few terms of the policy and decided to cancel the insurance policy she had purchased. Since the policy was recently purchased, the insurance company had given a free-look period of 15 days. Priya filed the surrender request with the insurer during this period, which was approved by the company and her entire first-year premium was refunded. If she had not read through the policy documents, she would have continued with the same policy, missing the chance to get back the payment made initially to the insurance company.

What are the common reasons to cancel Life Insurance Policies?

Life insurance policies offer essential protection for the family members in the absence of policyholders due to any event of any unfortunate circumstances. Everyone should have a life insurance plan. However, there are many reasons that you might want to cancel the policy.

Before acquainting you with how to cancel an insurance policy and insurance refund policy, we want you to learn about the main reasons to cancel the insurance policy.

Some of the common reasons behind canceling a life insurance policy are listed below:

• If you’ve foreclosed all your current loans and have enough funds to provide your family on your own.
• In case you do not have enough money to cover the premium of the insurance policy, then you can end the life insurance plan you have purchased.
• If you choose to change the policy on buying the wrong policy and then regretting the purchase.
• In the case of choosing a low-cost insurance policy that offers more protection at the least cost compared to your existing policy.

What is the best way to cancel SBI Life Insurance Policy?

There are multiple ways to cancel the life insurance policy if you are not interested to continue with it. So, you may cancel your SBI life insurance policy by following the below steps:

1. Contact SBI Life directly: The best method to start with the SBI life insurance cancellation process is to speak to the company and explain to them that you do not intend to renew your policy. Informing them about your intention will drastically simplify the entire process, as they will help you with the necessary formalities. If the cost of premiums is the primary reason for you to cancel, then SBI Life could assist in resolving the issue to ensure that you don’t have to cancel the policy altogether.

2. Canceling the policy within the free look period: If you are not satisfied with the product features of SBI Life, then you may choose to surrender it during the free-look period. Freelook period is the duration offered by insurance companies, which is normally between 10 to 30 days from the date of issue of the insurance document. The policyholder, during this period, can choose to cancel their life insurance plan and receive full reimbursement of the premium with no documentation.

3. Not Paying the Premiums: Another method of the SBI life insurance cancellation process is to avoid paying the premium amount on the life insurance plan even after the grace period. By opting to not pay the premiums, SBI life shall withdraw all the facilities offered by them, leading to the cancellation of the policy naturally. But this is not an acceptable practice and should not be followed unless necessary or if the company doesn’t respond to your discontinuation or surrender request.

4. Cash-out your Entire Policy: To stop a life insurance policy is an extremely difficult task as you may have had many plans for the benefit amount. But if you still want to cancel the policy after a few years of paying the premium, then the right option is to wait for the surrender period and cash out the entire policy by surrendering it completely and receiving a certain percentage of the amount that was paid as premium as surrender benefit.

What are the documents required to cancel SBI Life Insurance Policy?

Now, you know the SBI life insurance cancellation procedure and all life insurance policy cancellation rules.

It’s time to learn about the documents that you need to furnish to SBI officials, at the time of surrender or cancellation for smooth processing. Following is the list of documents required to cancel the SBI life insurance policy:

• Duly filed cancellation or surrender form/ FLC letter
• The Original Policy documents
• Policy Surrender Form
• Canceled Cheque with the policyholder’s name
• Copy of Passbook
• Bank Statement
• Copy of Pan Card
• Copy of Aadhaar Card
• Copy of Passport
• Driving License
• Voters ID
• Cancellation Form
• Latest Contact Details
• NRE Bank Statement, if premiums paid from NRE account

The Provision for Partial Withdrawal

For withdrawing partially, fill out the forms and hand them over to the nearest SBI Life Insurance Branch along with the original policy documentation, the canceled check, ID evidence like Aadhar card, PAN card, Passport, Driving License, or Voter ID along with the latest and updated contact information.

The Bottom Line

You can either cancel or surrender the life insurance policy at any point in time based on the type of plan you’ve chosen. But before doing it, make sure to have a proper plan in mind for your safety and your family’s well-being after your demise. As a responsible breadwinner for the family, ensure their lifestyle or dreams are not compromised without a life insurance policy.