Birla Sun Life Insurance: Canceling Your Policy Simplified

Life insurance is a long-term commitment and an ideal way to secure your family's future in the event of your demise. However, there may be situations where you need to terminate your policy early. If you want to close your Birla Sun Life Insurance policy, you will need to submit a request for cancellation, along with the reason for cancelling. You will also need to submit a number of documents, including original policy documents, a cancelled cheque, ID proof, and a policy surrender form. You can submit these at your nearest Aditya Birla Sun Life Insurance branch, or by contacting their customer support.

Cancelling Birla Sun Life Insurance before maturity

Life insurance is a long-term commitment and the ideal way to secure the future of your family in the event of your demise. However, there are circumstances in which you may need to cancel your policy before it reaches maturity. If you have Birla Sun Life Insurance and are considering cancelling it, here is a step-by-step guide to help you through the process.

Reasons for Cancelling

First, it is important to consider why you want to cancel your policy. Possible reasons could include financial difficulties, a change in financial needs, or finding a better option. Whatever the reason, it is essential to weigh the pros and cons before making a final decision, as cancelling your policy will result in losing tax and insurance benefits, and the surrender value is typically less than the amount invested.

Understanding Surrender Value

When you cancel your life insurance policy before its maturity, the insurance company will pay you a specific sum, known as the surrender value. This value is the accumulated component of the policy up until the termination. Not all Birla Sun Life Insurance policies acquire a surrender value; only those with an investment component, such as ULIPS, annuity, and endowment plans, acquire a surrender value over time.

There are two types of surrender values:

• Guaranteed Surrender Value (GSV): This is the percentage of total premiums paid, excluding the first premium of the particular policy. It depends on the year of surrender and can vary across insurers and products.
• Special Surrender Value (SSV): Also known as non-guaranteed surrender value, it reflects the actual market value of the investments and is determined periodically by the company itself. It is usually equal to or higher than GSV but is not guaranteed and can be revised based on changing investment returns and market values.

The Surrender Process

If you decide to proceed with cancelling your Birla Sun Life Insurance policy, you will need to take the following steps:

• Visit the official website or the nearest branch office of Aditya Birla Sun Life Insurance.
• Obtain the surrender form, which can be downloaded from the official website or obtained from a branch.
• Fill out the form, providing your reasons for surrendering the policy.
• Gather the necessary documents, including the original policy documents, a cancelled cheque with your name on it, a bank passbook or statement showing your name and account number, valid ID proof, and the latest contact details.
• Submit the completed form and documents to the nearest branch.
• Wait for the approval and surrender value to be credited, which typically takes 10 to 15 working days.

Charges for Surrender

Please note that there are usually charges associated with surrendering your life insurance policy before maturity. Life insurance companies will typically charge a certain percentage of the total premiums paid up to the surrender date. This percentage varies from company to company and is known as the surrender charge. However, you can waive this charge if you inform the company about your intention to cancel your policy in advance.

For example, for annuity plans, the discontinuity or surrender charge is typically around 10% of the funds contributed within the first year, and it drops to close to 1% in subsequent years.

In conclusion, while it is possible to cancel your Birla Sun Life Insurance policy before maturity, it is important to carefully consider your reasons and understand the financial implications, including any surrender charges and the potential loss of benefits.

Reasons for cancelling Birla Sun Life Insurance

Life insurance is a long-term commitment and an ideal way to secure the future of your family in the unfortunate event of your death. However, there are circumstances that may lead you to cancel your Birla Sun Life Insurance policy before it reaches maturity. Here are some reasons why you might consider cancelling:

Financial Circumstances

You may find yourself in a situation where you are facing a financial crunch and are no longer able to afford the premiums. In this case, cancelling your policy may be necessary to alleviate financial strain.

Alternative Investments

You may have found better investment options that offer higher returns or better align with your financial goals. This could prompt you to redirect your funds towards these alternative investments and, therefore, cancel your existing Birla Sun Life Insurance policy.

Changing Needs

Over time, your financial needs may change, and you may find that your current Birla Sun Life Insurance policy no longer meets those needs. This could be due to changes in your income, family situation, or other factors that influence your financial planning.

Endowment Policies

If you have an endowment policy with Birla Sun Life Insurance, you may decide to cancel because you are dissatisfied with the returns or feel that the policy is not meeting your investment expectations. Endowment policies combine life insurance with an investment component, and some policyholders may choose to cancel if they are unhappy with the investment performance.

ULIPs (Unit-Linked Insurance Plans)

ULIPs offer both insurance and investment benefits, but some policyholders may decide to cancel their Birla Sun Life Insurance ULIPs if they find the charges or fees associated with these plans too high or if they feel that the investment component is not performing as expected.

It is important to carefully consider your reasons for cancelling your Birla Sun Life Insurance policy, as it is a long-term commitment intended to provide financial security for your loved ones. Weigh the pros and cons, and understand the charges and potential loss of benefits before making a decision.

Documents required to cancel Birla Sun Life Insurance

To cancel Birla Sun Life Insurance, you will need to submit the following documents along with the surrender form to the nearest official branch of Aditya Birla Sun Life Insurance:

• Original policy documents
• A cancelled cheque with the name of the policyholder on it
• A bank passbook copy or bank statement with the pre-printed name and account number
• ID proof (PAN card, Aadhaar Card, Passport, Driving License, Voters ID)
• Duly filled policy surrender form
• Latest contact details
• NRE bank statement reflecting any premiums paid from the NRE account

If the cancelled cheque does not have a pre-printed name, account number, or if a new account is mentioned on the cheque, then you must provide a passbook copy or bank statement with the pre-printed name and account number.

It is important to note that not every Aditya Birla Life Insurance policy acquires a surrender value. Life insurance policies with an investment component, such as ULIPS, annuity, and endowment plans, acquire a surrender value over time.

The surrender value is the sum paid to the insured when they terminate the policy before maturity. This value is determined by the assured sum, the number of premiums paid, the policy term, any bonuses received, and the surrender value factor.

The process of cancelling Birla Sun Life Insurance typically involves submitting the necessary documents, along with the completed surrender form, and waiting for approval. After approval, the surrender value will be credited to your account.

Surrender value of Birla Sun Life Insurance

If you are considering closing your Birla Sun Life Insurance policy, it is important to understand the surrender value and the process involved. Birla Sun Life Insurance, also known as Aditya Birla Sun Life Insurance, offers life insurance policies with fixed tenures during which the insured person is required to pay premiums regularly. While it is advisable to stay invested in the policy throughout its tenure to avail of maximum benefits, there may be situations where one wishes to terminate the policy prematurely.

Surrender Value Explained:

When a policyholder exits a Birla Sun Life Insurance policy before its maturity, the insurance company may pay a specific sum known as the surrender value. This value is the accumulated component of the policy until the termination. Not all policies acquire a surrender value; only those with an investment component, such as ULIPs, annuity, and endowment plans, acquire a surrender value over time.

There are two types of surrender values:

• Guaranteed Surrender Value (GSV): This is the percentage of total premiums paid, excluding the first premium of the particular policy. The GSV, also known as the Guaranteed Surrender Value Factor, depends on the year of surrender and varies across insurers and products. It does not include additional premiums paid for riders or any bonuses received.
• Special Surrender Value (SSV): Also known as non-guaranteed surrender value, SSV reflects the actual market value of the investments. It is determined periodically by the company and is subject to revision based on changing investment returns, market values of underlying assets, and other factors. SSV is usually equal to or higher than GSV but is not guaranteed.

Calculating Surrender Value:

The surrender value of a Birla Sun Life Insurance policy can be calculated using the following formula for GSV:

> GSV = (GSV Factor x Total Premiums Paid) + (GSV Factor x Accrued Bonuses or Paid-up Additions) - (Already Paid Survival Benefits)

For SSV, the formula is as follows:

> SSV = [Original Sum Assured x (Number of Premiums Paid / Number of Premiums Payable) + Total Bonuses Received] x Special Surrender Value Factor

Surrender Process:

To surrender a Birla Sun Life Insurance policy, the policyholder must submit the reason for surrender along with the surrender form and the required documents to the nearest official branch. The documents include:

• Original policy documents
• Cancelled cheque with the policyholder's name
• Bank passbook or statement with the pre-printed name and account number
• Valid ID proof (PAN Card, Aadhaar Card, Passport, Driving License, Voters ID)
• Policy surrender or cancellation form
• Latest contact details
• NRE bank statement reflecting any premiums paid from the NRE account

After submitting the required documents, the policyholder typically needs to wait for 10 to 15 working days for approval and for the surrender value to be credited.

It is important to note that there may be charges associated with surrendering a policy before maturity, and these charges vary among companies. Additionally, informing the company in advance about cancelling the policy may help waive the surrender charge.

Contacting Birla Sun Life Insurance

The customer service department of Birla Sun Life Insurance is designed to help customers with any queries or issues related to their policies. The company offers a variety of communication channels to reach out to their customer care team.

Phone Support

To speak to a customer care representative, you can call their toll-free number 1800-270-7000. This service is available from 9.00 a.m. to 9.00 p.m., seven days a week. If you are calling from outside India, you can use the number +918045860777, but please note that charges may apply based on your network operator.

Email Support

You can also reach out to the customer care team by sending an email to [email protected]. In your email, be sure to include your query or issue in as much detail as possible, and the customer service team will respond within a stipulated time frame.

Online Chat

The Birla Sun Life Insurance website offers an 'Need Help' online chat option on its homepage, where you can connect with a customer care executive and share your concerns.

In-Person Support

If you prefer to discuss your insurance plan or policy-related issues in person, you can visit one of the many branch offices of Birla Sun Life Insurance located across India. To find the nearest branch, simply visit the 'Contact Us' page on their website and click on the 'Locate Us' button.

SMS Service

Birla Sun Life Insurance also provides an SMS service called 'MYALERTS' to help customers easily access information about their policies. To use this service, simply send an SMS with the relevant command to 567679. For example, to receive your premium paid certificate, you can type "PPC" and send it to the same number.

Arranging a Meeting with an Expert

If you wish to discuss insurance plans or have specific queries, you can request a meeting with an expert by clicking the 'Send An Advisor' button on the 'Contact Us' page of the website. You will need to provide details such as your name, email, mobile number, and location. A customer care representative will then get in touch with you to arrange a meeting.

Customer Complaints

In the event that you are dissatisfied with the services provided or the response received from the customer service team, Birla Sun Life Insurance offers a grievance redressal process. You can find the 'Give Feedback' option on the customer service page, which will redirect you to a complaints page. Here, you can register your complaint and receive a token number via email. The company aims to respond to complaints within 10 days. If you don't receive a satisfactory response, you can escalate the matter by writing to the Grievance Redressal Officer, Chief Grievance Redressal Officer, or the Grievance Redressal Committee, using the token number you received. If your issue still remains unresolved, you can approach the Insurance Ombudsman Officer in your region.

Additionally, you can submit your grievance via postal mail to the following address:

> Birla Sun Life insurance,

> Grievance Redressal Department,

> G-Corp Tech Park, 6th Floor,

> Kasar Wadavali, Ghodbunder Road,

> Thane - 400 601.

Frequently asked questions