LIC OF INDIA offers four options for paying premium for its policies i.e. monthly, quarterly, Half yearly & Yearly. Monthly is done by ECS (Electronic Clearing System-direct from bank) and SSS (Salary Saving Scheme-direct deduction from the salary).
Policyholders can choose any mode of their choice at the time of commencement of their policy. But it can be changed from any mode to other easily but this will be done once in year just before making the payment due at the time of the anniversary of the policy. The procedure needed to follow is as under:
When the frequency of premium instalments are increasing 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 give a written letter to his home LIC branch and he also has to pay Rs 50/- to LIC OF INDIA for MR (Miscellaneous Receipt) and it will be done.
When the frequency of premium instalments are decreasing in a policy year(from monthly to yearly, from half yearly to yearly or from monthly to half yearly etc). it will be done simply by giving a letter to LIC OF INDIA and NO amount will be paid in this case.
In case you still have any doubt about it, you can discuss it at LIC HELPLINE forum.
Letter Format for change of mode for your policy.
To
The Branch Manager
………………………………………………
……………………………………………..(// address of the branch)
Sub: Mode Change from ………to…………. for policy no……………..
Sir,
I hereby state that I have a policy with policy no. ………………………………………………………. from your branch. This has mode …………….. and I want to change its mode from………………to ………………………… . Kindly do the needful and get it done ASAP.
Thanking You
Your faithfully
……………………..
……………………..(// Name & Address of the policyholder)
