I have an LIC policy where I have paid premiums for 5 years, but I can no longer continue paying. I want to convert it into a paid-up policy. Is there an online process or form to do this without going to the LIC branch?
You do not need to follow any process, fill out any forms, or visit a branch to convert your LIC policy to a paid-up one. The conversion is a completely automatic process that is triggered by default when you simply stop paying your premiums after the initial mandatory period.
The Automatic Conversion Process
My friend was in a similar situation where he could no longer afford the premiums for his endowment policy after having paid for six years. He was searching online for a form to “apply for paid-up status.” I had to explain to him that there is no such application process. All he needed to do was to simply stop paying the premiums.
What Happens After You Stop Paying the Premium
I explained the automatic timeline to my friend. His premium was due in June. He did not pay it. The 30-day grace period for his policy ended in July. A week or so after the grace period expired, he logged into his LIC customer portal to check. As expected, the policy status had automatically changed from ‘In-Force’ to ‘Paid-Up’. He did not have to visit a branch or speak to anyone to make this happen.
The Condition for a Policy to Become Paid-Up
An LIC agent had previously explained a very important condition to me. This automatic conversion to a paid-up policy only happens if the policy has already acquired a surrender value. For most traditional LIC plans, this means you must have paid the premiums for at least two or three full years. If you stop paying in the first or second year, the policy will simply lapse without any value.
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