• How to make alterations in your LIC policy?

    Life Insurance
    • Premiums as low as Rs.17/day for sum assured of Rs.1 crore*
    • Claim up to Rs. 1,50,000 deduction under section 80C**
    • Choose between annual and monthly premium payment options

    In India, the Life Insurance Corporation of India (LIC) is one of the most trusted companies when it comes to making investments. Policyholders can subscribe to different types of plans offered by the company and get access to a wide range of benefits. During the course of a policy term, a policyholder may have to make certain alterations to the policy as and when the need arises. LIC has provisions for policyholders to make alterations in their policies. However, there are various restrictions that apply when it comes to making alterations.

    Types of alterations allowed in LIC policies

    Sometimes policyholders may wish to change the terms and conditions even after a policy is issued. In these situations, they can approach the company and request for a change in their policy terms. While alterations are allowed during a policy’s lifetime, they are limited to the following types:

    • Alteration in name
    • Corrections in policies
    • Modification in class or term
    • Reduction in sum assured amount
    • Changes in mode of premium payment
    • Grant of accident benefit
    • Modification in currency or place of premium payment
    • Removal of extra premium
    • Changes to ‘with profit plan’ from ‘without profit plan’
    • Sum assured settlement by installments
    • Premium waiver benefit under CDA policies

    Types of alterations not allowed in LIC policies

    There are restrictions to what kind of alterations are allowed in an LIC policy. The following alterations are not permitted by LIC under any circumstances:

    • Increase in sum assured amount
    • Alterations for policyholders above 70 years of age
    • Modification from ‘with profit plan’ to ‘without profit plan’
    • Alternation from any mode of payment to single premium policy
    • Modification from Jeevan Mitra to Money Back policy
    • Modification from Jeevan Asha I to Jeevan Asha II
    • Alterations for policies that are not in full force
    • Alterations within one year of commencement of a policy

    How to apply for alterations

    All requests related to alterations in a policy must be made only in the home branch where the policy is purchased. The application must be provided in writing along with all the documents required for making the alteration. The documents required may differ based on the type of alterations you wish to make in your policy documents. For instance, if you wish to change your name, you may have to produce an official document carrying your name or a government gazette supporting the name change. The following list of documents may be requested by LIC depending upon the type of alteration you need:

    • A written request for the alteration required along with the reason for change
    • An appropriate application form
    • Quotation fee for the alteration required
    • Original policy document provided at the time of policy issue
    • Health declaration
    • Other documents that may be requested by the company (age proof, address proof, name proof, etc.)

    Once these documents are submitted along with the application, the company will process the request and make the necessary changes in the policy document. The entire process may take some time, but it has to be done if you want the changes to be reflected in your policy.

    Quotation fee

    Quotation fee refers to the small fee that a policyholder must pay the company to make a particular alteration. For most of the changes listed above, a standard fee of Rs.50 is applicable. For making changes in sum insured, policy term, mode of payment, premium waiver benefit, etc., the policyholder must pay the standard fee to the company. However, there are certain alterations that can be made even without paying the quotation fee. Changes such as corrections for misrepresentations, removal of extra premium, reduction in premium paying term (without any change in policy term), revocation or charge in trustees, etc., can be done without paying any fees to the company.

    Why is it important to update your policy

    While some people consider it a hassle to visit the branch and apply for alterations, this is something that must be done without fail. The information you provide in your policy is used for everything from everyday communication to claim settlement. If the information is not up to date, you may face a lot of trouble in the future. For instance, if your contact information (address, email, phone number, etc.) is not correctly updated, you might miss out some key information communicated to you such as premium notices, survival benefits, discharge vouchers, changes in policy term, etc.

    If your legal name or the name of beneficiaries is not correctly updated in the policy document, you may have trouble at the time of claim settlement. Even simple issues like misspellings must be corrected immediately by notifying the company. Some people have multiple insurance and investment policies with LIC to diversify their investment portfolio. When there is a major change, it must be updated in all policies in their respective branches. Also, keeping the information up to date helps the company remove fraudulent claims and other related issues.


    As noted, alterations must be made in a policy as and when they are required. Timely notification of alterations will prevent any issues that may arise regarding a claim. Also, it is necessary to pay the premium on time and keep the policy active. If you are making any major changes in your life, it is necessary to review all your insurance covers and check if the information is up to date. If there are any doubts regarding the changes that must be made in a policy, you can contact the home branch office or the company’s customer care department.

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