Step-by-Step Guide to Surrender Axis Bank – Max Life Insurance Policy
Sometimes, life circumstances or financial goals change, and continuing an insurance policy may no longer feel necessary or feasible. If you’ve purchased a life insurance policy from Max Life through Axis Bank and are now considering surrendering it, this guide will explain the full process clearly and in a personalized way.
What Does It Mean to Surrender an Insurance Policy?
Surrendering a life insurance policy simply means you’re choosing to end it before its maturity date. When you surrender, you inform the insurer that you no longer wish to continue, and in return, the insurer may pay out a certain amount, called the surrender value, if your policy is eligible.
However, you should know that once surrendered:
- Your life cover stops immediately.
- You won’t receive any future benefits or bonuses.
- You may lose out on tax benefits if surrendered early.
Things to Check Before Surrendering
Before taking this step, it’s a good idea to revisit your policy document or speak to customer care to clarify:
- Have you completed the minimum lock-in period? (3 years for traditional plans, 5 years for ULIPs)
- What is your policy’s current surrender value?
- Will there be any surrender charges or penalties?
- Will it affect your tax savings claimed in previous years?
Where Should You Submit the Surrender Request?
Even though you bought the policy via Axis Bank, you cannot surrender it at the bank branch. Instead, you must contact Max Life Insurance directly. You can visit any nearby Max Life branch to initiate the surrender.
To find a nearby branch, use the branch locator on Max Life’s official website.
Documents You’ll Need to Carry
Here is a list of documents you’ll need when surrendering your policy:
- Original policy document
- Duly filled surrender request form (available at the branch or on Max Life’s website)
- A cancelled cheque (with your name printed)
- A valid ID proof (such as Aadhaar, PAN, Voter ID, or passport)
- Your bank passbook or a recent bank statement (in some cases)
Make sure that the bank account details you submit match the policyholder’s name exactly.
Submitting the Request at the Branch
When you reach the Max Life office:
- Request a surrender form if you haven’t already printed one.
- Fill in the necessary details.
- Submit the form along with all required documents.
- The branch staff will verify everything and issue you an acknowledgment receipt for your records.
What Happens After You Submit?
Max Life usually takes around 7 to 10 working days to process the surrender request. If all documents are in order, the surrender amount (if applicable) will be transferred to your bank account directly. You’ll also receive an SMS or email confirmation.
Customer Support Contact Details
If you want to check the status of your request or need help, here are the customer support channels:
- Phone: 1860 120 5577
- Email: service.helpdesk@maxlifeinsurance.com
- Website: www.maxlifeinsurance.com
- You can also use the My Max Life app for status tracking.
Important Considerations
- Tax reversal: If surrendered before 5 years, earlier tax deductions under section 80C may get reversed.
- Low returns: If the policy is very new, the surrender value may be much lower than what you’ve paid.
- Alternate options: Consider making the policy “paid-up” (no further premiums, lower benefits) instead of surrendering.
20 Frequently Asked Questions (FAQs)
1. Can I surrender my Max Life policy through Axis Bank?
No, you must visit a Max Life Insurance branch.
2. What is the minimum time after which I can surrender the policy?
Usually after 3 years (traditional plans) or 5 years (ULIPs).
3. Will I get all my money back after surrendering?
No, you’ll only get the surrender value, which is usually lower than the premiums paid, especially in early years.
4. How do I calculate the surrender value?
You can check your policy document or call Max Life customer care for the current value.
5. Are there any surrender charges?
Yes, depending on the policy type and how many years you’ve paid premiums.
6. How long does the surrender process take?
Around 7 to 10 working days after submission of documents.
7. What if I lost my original policy document?
You’ll need to request a duplicate and submit an indemnity bond.
8. Is it mandatory to provide a cancelled cheque?
Yes, it ensures that the payout goes to the correct bank account.
9. Can I surrender online?
In most cases, surrender must be done offline at a branch. Some assistance may be available through the app or portal.
10. Will my tax benefits under 80C get reversed?
Yes, if you surrender within 5 years of policy inception.
11. Can I reinstate the policy after surrendering?
No, once surrendered and settled, it cannot be reinstated.
12. Can I surrender a term insurance policy?
You can, but since there’s usually no savings or investment component, there is no surrender value.
13. What’s the best time to surrender a policy?
Preferably after the lock-in period and once the surrender value is reasonable.
14. Do I need to pay any fees to surrender?
No fees, but surrender charges may be deducted from the amount you receive.
15. Can someone else submit the surrender documents for me?
Yes, but they may need an authorization letter and ID proof from you.
16. What if the policy is jointly held?
All policyholders must sign the surrender form.
17. Will I get any bonus amounts on surrender?
Only if the policy has accumulated bonuses; this depends on the product type and surrender timing.
18. Is there any way to avoid surrender and still get funds?
You can explore options like taking a loan against your policy (if eligible).
19. Will I get a confirmation after surrender?
Yes, via SMS, email, or both.
20. How do I track the status of my surrender request?
You can call customer care or log in to the Max Life customer portal/app.
