LIC policyholders can choose any mode or frequency of payment of premiums of their choice (monthly, quarterly or yearly) at the time of commencement of their policy. Later on, if required by policyholder the mode or frequency of payment of premiums can be altered to higher or lower frequency during the term of the policy. This change is done in such a way as to coincide with the date of policy anniversary or the corresponding Monthly, Quarterly or Monthly dates.
What is the procedure?
The procedure needed to follow for this change is as under:
A- From Lower to Higher Frequency:
When the policyholder wants to increase the frequency of premium installments in a policy year (i.e. from yearly to half yearly or from yearly to quarterly or from half yearly to monthly etc). The policy holder has to write a letter explaining the change of mode to his home LIC branch and he also has to pay a fee of Rs 50/- to LIC OF INDIA for MR (Miscellaneous Receipt) and it will be done.
B- From Higher or Lower Frequency:
When the policyholder wants to decrease the frequency of premium installments in a policy year (from monthly to yearly, from half yearly to yearly or from monthly to half yearly etc). It will be done by policy holder by writing a letter to LIC OF INDIA and NO fee will be paid in this case.
Quarterly to yearly premium mode change can only be done on the month you purchased your policy provided that you had paid all the previous premiums till that time.
Things to Take Care:
1– Please note that this will be done once in year just before making the payment due at the time of the anniversary of the policy.
2– As a rule, no alterations are entertained during the first policy anniversary.