The LIC Jeevan Labh Surrender Value calculator is an online tool that helps the policyholder to calculate the surrender value of their LIC Jeevan Labh Policy. The calculator allows the policyholder to get an estimate of the money they will receive after surrendering the policy and helps them to make better decisions.Read more
Before discussing the LIC Jeevan Labh Surrender Value Calculator, let’s briefly understand what surrender value exactly is.
The surrender value represents the amount of money a policyholder is entitled to receive from the insurance company if they choose to terminate or surrender their LIC Jeevan Labh Policy before its maturity date. The surrender value is usually a portion of the total premiums paid by the policyholder minus any applicable charges or deductions.
**LIC Jeevan Labh 836 acquires surrender value on the completion of three policy years.
LIC of India offers policyholders an online tool known as the "LIC Jeevan Labh Surrender Value Calculator." This tool is designed to provide policyholders with crucial information about the surrender value of their life insurance policies. In this comprehensive overview, we will explore how the LIC Jeevan Labh 836 Surrender Value Calculator works and why it is essential for policyholders.
The LIC Surrender Value Calculator offers the following benefits:
Informed Decision-Making: It empowers policyholders to make informed decisions about whether to surrender their policies or continue with them. By knowing the surrender value, policyholders can assess whether it aligns with their financial goals and needs.
Financial Planning: The LIC Jeevan Labh 836 Surrender Value Calculator helps policyholders incorporate the surrender value into their overall financial planning, especially if they are considering reinvesting the funds or purchasing a new insurance policy.
Transparency: LIC Jeevan Labh Surrender Value Calculator promotes transparency by providing policyholders with a clear estimate of the surrender value, helping them understand the financial implications of their decision.
Tax Considerations: Policyholders can use the surrender value calculation to assess any tax implications associated with surrendering their policies.
Policy Comparison: If policyholders are considering surrendering one policy to purchase another, the LIC Jeevan Labh 836 Surrender Value Calculator allows for a comparison of surrender values to make an informed choice.
Policyholders are entitled to get two types of surrender values if they surrender their policy before maturity.
Guaranteed Surrender Value - The guaranteed surrender value is calculated as - the total premium amount paid till policy surrender multiplied by the guaranteed surrender value factor (as applicable for total premiums paid).
Special Surrender Value - The special surrender value is calculated as - special surrender value factor multiplied by the sum of paid-up sum assured and vested bonuses. The special surrender value factor is declared by LIC periodically and can be assessed only at the time of surrender.
In addition to the above two types, bonuses acquire a surrender value. The surrender value concerning simple reversionary bonuses is calculated as - vested bonuses multiplied by the surrender value factor (as applicable under vested bonuses).
The LIC Surrender Value Calculator is a useful tool that helps policyholders estimate the surrender value of their LIC Jeevan Labh Policy. To understand how it works, let's break down the steps involved in using this calculator:
Access the Calculator: Start by visiting the official LIC website, where you can find the Surrender Value Calculator.
Enter Policy Details: You will need to provide specific details about your LIC insurance policy. These details typically include
Policy Commencement Date
Premium Information: Next, you will need to provide details related to the premiums you have paid:
Premium Payment Term
Total Premiums Paid
Frequency of Premium Payments
Additional Riders (if applicable): If your LIC policy includes any additional riders or coverage options, provide details about these riders. Riders can impact the surrender value calculation.
Calculate: Once you have entered all the required information, click the "Calculate" or "Submit" button on the calculator. The tool will process the data you provided to estimate the surrender value of your LIC policy.
View Results: After processing, the calculator will display the estimated surrender value. It may provide both the guaranteed surrender value (minimum amount guaranteed by LIC) and the special surrender value (which can be higher and depends on various factors).
Keep in mind that surrendering a policy prematurely may have financial consequences, and to avoid them, you can renew your LIC policy as well.
To bring more clarity to the usage of the LIC Surrender Value Calculator, let's look at a sample profile and calculate the surrender value for the same. For this illustration, we are considering Ray, who bought LIC's Jeevan Labh policy for a cover of Rs.10 Lakhs for a policy term of 21 years. His annual premium came out to be approximately Rs.48,000.
Let’s assume the bonus rate to be Rs.50 per thousand sum assured.
Please note that all the factors have been assumed for a sample profile and should not be construed as definitive.
Now, Ray has paid all due premiums for 6 years, following which he decided to surrender the policy. The guaranteed surrender value he is entitled to at this point will be calculated in the following manner.
Total Premium Paid is (6 x 48,000), which equals Rs.2,88,000.
The surrender value Factor for total premiums paid for 6 policy years is 50% (as in Table 1).
Therefore, the surrender value of premiums comes out to be (Rs.2,88,000 x 50%) which equals Rs.1,44,000.
The bonus amount receivable for 6 years at the above-mentioned rate is ((50 x 10,00,000/1,000) x 6), which equals Rs.3,00,000.
The surrender value Factor for bonuses received for 6 policy years is 17.03% (as in Table 2).
Therefore, the surrender value of bonuses comes out to be (Rs.3,00,000 x 17.03%) which equals Rs.51,090.
Finally, Ray receives the sum of Rs.1,44,000 and Rs.51,090, which comes to Rs.1,95,000. This final amount is the guaranteed surrender value payable by LIC to Ray.
LIC Jeevan Labh Surrender Value Calculator is a valuable tool that empowers policyholders to make informed financial decisions regarding their insurance policies. Providing estimates of guaranteed and special surrender values helps policyholders plan their financial future effectively.
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*All savings are provided by the insurer as per the IRDAI approved insurance plan. Standard T&C Apply
^Trad plans with a premium above 5 lakhs would be taxed as per applicable tax slabs post 31st march 2023
+Returns Since Inception of LIC Growth Fund
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