You can use complete withdrawal or do not exercise any option during the notice period. It is not surrender of the policy. When you exercise the option for complete withdrawal or you do not exercise any option during the notice period shall be as under:

If the policy is discontinued within 5 years from the date of commencement of the policy:
If you exercise the option for complete withdrawal from the policy, or you do not exercise the option within the period of 30 days of receipt of notice, then the policy shall be compulsorily terminated. The Policyholder’s Fund Value as on the date of discontinuance of policy after deducting the Discontinuance Charge shall be converted into monetary terms as specified below and Proceeds of the discontinued policy as specified below shall be payable after completion of 5 years from the date of commencement of the policy.

Source - LICIndia.in