Letting The Policy Lapse

Unfortunately if you missed the free look period, the other option for early exit is to let the policy get lapsed. As there is no other way to exit the unwanted policy in the initial years except than allowing it to lapse. No insurance company will provide you an exit option during the first 3 years. Only when you stop paying your premiums, your policy will lapse. But remember, if your policy lapses, you will not receive anything from your insurer and all your paid premiums will be lost.

Letting The Policy Become Paid Up

You can also choose to make your traditional endowment plans paid up rather than completely dissolving your policy. By letting the policy become paid up, you can discontinue paying your premiums. Here your policy will not turn void, but shall continue to provide you cover at a reduced sum assured. This reduced sum assured, is called the paid-up value. Do remember, you will not be provided any additional benefits, future bonuses and dividends on a paid- up policy. However, any bonuses accrued in the first 3 years would be paid on maturity.