With an insurance policy, it is essential to navigate various aspects and understand the surrender value of a policy. LIC, a trusted name in the insurance industry, provides a powerful tool—the LIC Policy Surrender Value Calculator—to assist policyholders in making informed decisions.
In return for a regular payment known as the “Premium,” policyholders entrust the insurance company with the responsibility of providing either the death benefit to the nominee or the maturity benefit to the insured, as mentioned in the life insurance policy.
The surrender value of a life insurance policy from LIC is calculated by multiplying a single premium by 75% of the remaining term until maturity or the total term.
For term assurance policies with an increasing maturity date, the LIC surrender value calculator is computed through the following methods:
- Multiply the single premium with 80% of the remaining term until maturity
- Multiply the remaining term by the effective sum assured’s average at surrender and the effective sum assured at maturity
- Taking the average of the initial sum assured and the effective sum assured at maturity.
Apart from providing surrender value estimates, the LIC Surrender Value Calculator also offers insights into the potential benefits of keeping the policy active until maturity. This can help policyholders weigh the pros and cons of surrendering against continuing with the policy.
This article will explain details on the lic surrender value calculator, so read on.
What is The LIC Policy Surrender Value Calculator?
The LIC Surrender Value Calculator is an accessible online tool that provides a convenient means to obtain essential information regarding the surrender of your LIC policy. You can get the approximate surrender value using the lic policy surrender value calculator.
This information includes:
- Policyholder’s Name and Registered Mobile Number
- Plan Name, Policy Term, and Number of Paid Premium Installments
- Premium Amount and Mode of Payment
- Total Number of Policy Years
It’s important to note that while the online lic surrender value calculator’s output offers a close approximation, the actual sum can be different. Additionally, the method used to calculate the surrender value can affect the final result.
The calculator’s user-friendly interface and straightforward input process make it accessible to policyholders of varying levels of financial literacy. It also explains how each component (premium paid, policy term, and accrued bonuses) affects the surrender value, offering valuable insights into the policy’s financial conditions.
Types Of LIC Policy Surrender Value
Distinguishing between the two types of surrender value is crucial for policyholders to make a financial decision:
1. Guaranteed Surrender Value
The insurance company assures a specific payout, known as the guaranteed surrender value if the policyholder chooses to surrender the policy within its term after it has acquired a surrender value. This value is typically a percentage of all the total premiums paid, barring any additional premiums for riders. The applicable percentage may vary depending on the policy term and the year of surrender under the policy’s conditions.
You can calculate the guaranteed surrender value using the below formula:
Guaranteed surrender value = Surrender value factor × Total premiums paid
2. Special Surrender Value
The special surrender value is a non-guaranteed sum that equals or surpasses the guaranteed surrender value. It considers factors such as the number of premium installments paid, the duration of the policy, and any accumulated bonuses.
To get the value of the special lic surrender value check, use this formula:
Basic sum assured × (Number of premiums paid or due + Cumulative bonuses) × Surrender value factor X
It’s important to note that LIC provides a specific formula for calculating these values, considering factors such as the policy’s tenure, premium payments, and accrued bonuses.
Guidelines to Follow for LIC Policy Surrender
Here are the steps a policyholder should take when surrendering an LIC policy:
- Visit the nearest LIC branch to collect Form No. 5074, Application for Surrender/Discounted Value.
- Ensure that Form No. 5074 is thoroughly completed and submit it with the relevant documents.
- LIC will process the surrender request upon receiving the paperwork and supporting documents.
- Once all necessary procedures for policy surrender are completed, and the surrender request is approved, the surrender value is directly transferred to the policyholder’s bank account.
Policyholders should also consider whether their specific policy’s special clauses or features could affect the surrender value. Some policies may have special cases regarding surrender, which you should thoroughly examine before surrendering the policy.
How is the Surrender Value Calculated with the LIC Policy Surrender Value Calculator?
You can check the surrender value of the lic policy calculator policy through one of two methods. For LIC policyholders looking to obtain the online LIC surrender value calculator, the following steps should be followed:
- Begin by registering as a new user on LIC india. in.
- Log in and select “Enrol Policies” from the left menu.
- Visit “Click to Enroll New Policies” and click “Proceed.”
- Enroll your policy by providing the policy number and the amount of premium paid, then click “Submit.”
- After registering the insurance, select “View Enrolled Policies.”
- Under the quotation “Loan and Bonus” tab, click “Click for Information.”
- The integrated application will display the surrender value.
LIC Surrender Value Calculator Jeevan Anand
The LIC Surrender Value Calculator for Jeevan Anand provides a user-friendly online platform for quick premium and maturity amount calculations. This tool is mainly designed for the LIC New Jeevan Anand plan.
Using the LIC New Jeevan Anand Premium Calculator is an easy process. You can use the lic surrender value chart and input your details. The details include your desired sum assured for the LIC New Jeevan Anand Policy, the appropriate policy term, and your age. You will also need to provide your name, contact information, and, if applicable, your rider choice in the lic surrender value chart. Once you’ve entered all the necessary information, you can select the “calculate” option to determine the premium.
The lic surrender value calculator instantly calculates the premium amount per your details. It also provides options for various premium payment methods. Furthermore, the online lic surrender value calculator allows you to determine the maturity amount based on age and policy term. This tool enhances transparency and empowers policyholders by providing them with accurate financial information about their LIC New Jeevan Anand policy.
How Can I Use the LIC Policy Surrender Value Calculator app for the LIC New Jeevan Anand Premium?
Using three easy steps, you can use the LIC surrender value calculator for the LIC New Jeevan Anand policy.
To utilize the surrender value of the LIC policy calculator, follow these steps:
- Activate the LIC policy surrender value calculator.
- Specify the desired assured amount and insurance duration.
- Provide the age of the insured person.
- Click “compute” to conduct a LIC surrender value check after entering these basic details. The digital platform will promptly calculate the outcome and display it for you.
In conclusion, understanding the intricacies of LIC policy surrender and utilizing tools like the LIC surrender value calculator app and the surrender value of lic policy calculator can significantly empower policyholders to make informed decisions about their insurance investments. By following the given guidelines, individuals can confidently navigate the surrender process.
It’s important to remember that surrendering a policy is a significant financial decision, and careful consideration of the potential benefits and results is crucial. You should seek advice from LIC representatives or financial advisors to ensure the chosen path aligns with one’s long-term financial goals.
Ultimately, the LIC surrender value calculator is a valuable resource, providing transparency and clarity. Individuals can confidently take on their financial journey by leveraging this tool with a thorough understanding of policy terms.
LIC Policy Surrender Value Calculator – FAQs
Will the LIC surrender value calculator app give the same surrender value for all LIC policies?
Ans. No, the surrender value varies based on the specific type of policy and its associated terms and conditions.
How much will I receive if I surrender my LIC coverage after five years?
Ans: If premiums were paid for more than 4 but less than 5 years, you’ll receive 90% of the total maturity amount. You’ll receive the full sum assured if premiums were paid for over five years.
Can I surrender my LIC policy at any time?
Ans. While you can surrender a policy at any time, it’s crucial to note that the surrender value may fluctuate based on the policy’s tenure and type.
What happens if I surrender my life insurance policy before maturity?
Ans. Surrendering a policy before its maturity date may lead to a lower surrender value than waiting until maturity.
Where can I go to cancel my LIC policy?
A: You can surrender your LIC policy only at the current servicing branch where it is managed. Before surrendering, transfer the policy to your desired servicing branch.
Can I revive my surrendered LIC policy?
Ans. In some instances, it may be possible to revive a surrendered policy by paying any remaining premiums and related penalties.
Are there tax implications when surrendering an LIC policy?
Ans. Yes, there can be tax consequences associated with surrendering an LIC policy. These are not calculated with the lic policy surrender value calculator. Therefore, you should consult a tax expert or financial advisor for personalized advice.