LIC maturity claim: the process, the forms and the timeline

The timeline

• About two months before the maturity date, the servicing branch sends a maturity intimation with the discharge form (Form 3825).
• Submit the completed form with the original policy bond at least one month before the due date.
• LIC processes the claim in advance and pays by NEFT into your bank account on the due date.
• No intimation within two months of maturity? Contact your servicing branch straight away. A changed address is the usual reason.

What to submit

• Discharge form (Form 3825), signed as instructed
• Original policy bond, with any deed of assignment
• NEFT mandate with a cancelled cheque or bank passbook copy, in the policyholder’s own name
• KYC: identity and address proof, and PAN

Money-back policies: survival benefits

Survival benefits under money-back plans are paid on their due dates as long as premiums are paid up to that anniversary. Where the amount is up to ₹5 lakh, LIC generally releases it without asking for the discharge form or the policy bond. Larger amounts need both. The final payout at the end of the term is a maturity claim, as above.

If the policy bond is lost

Search properly first: home papers, office files, and check whether the bond is with LIC or a bank against a loan. If it is truly lost, apply at the servicing branch for a duplicate policy. Start at least two to three months before maturity.

• Indemnity bond on stamp paper of the required value, notarised
• Photo identity proof and residence proof
• The duplicate policy preparation fee, paid at the branch

Tax on the maturity amount

Most maturity amounts are tax-free, but not all. A policy issued on or after 1 April 2012 qualifies only if its yearly premium was within 10% of the sum assured, and newer high-premium policies have further limits. Where the amount is taxable, LIC deducts TDS on the income part, so make sure your PAN is on record. The tax guide below has the details.

Before you reinvest it

A maturity amount is often the largest single sum a family receives. Before it goes into anything new, check two things: that your family still has enough life cover now that this policy has ended, and that the next home for the money matches when you will need it. I am happy to go through both with you, with no obligation to buy.

Frequently asked questions