LIC has withdrawn its Jeevan Saral policy. For those whose policies are still ongoing and want to surrender it for cash, they can first use LIC’s online calculator to see how much they are entitled to. Surrendering your LIC Jeevan Saral policy after 10 years will get you a minimum of 30% of the premiums paid till date.Read more
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Yes, LIC Jeevan Saral can be surrendered anytime after paying premiums for the first 3 years. You are likely to receive a higher amount if the policy is nearing maturity. If not, the surrender value will depend on the total premiums paid by you.
LIC will either pay you the guaranteed surrender value or the special surrender value, whichever is higher at the time of policy surrender. The LIC Jeevan Saral surrender value after 10 years calculator will help you estimate this amount before you actually surrender the policy.
Read along to find out how to check the surrender value of LIC policies after 10 years.
The LIC Jeevan Saral surrender value after 10 years calculator uses the following formula to calculate the surrender value of the policy -
If you have paid premiums for 3 years, you will get a guaranteed surrender value of 30% of the total premiums paid minus the 1st year’s premium and that of other riders. If you have been paying premiums for 10 years or more, LIC declares a guaranteed surrender value factor. In this case, guaranteed surrender value will be equal to (total premium paid multiplied by the
guaranteed surrender value factor) plus (bonus multiplied by surrender value factor for
For LIC policies, the special surrender value is equal to (Original sum assured multiplied by (number of premiums paid / number of premium payable) + total bonus received) * surrender value factor.
In the case of LIC Jeevan Saral, the special surrender value depends on the reduced maturity sum assured. The maturity sum assured reduces as per the number of premiums paid. The LIC Jeevan Saral surrender value after 10 years calculator uses the following criteria to estimate the special surrender value -
(a) On paying premiums for less than 4 years, 80% of the reduced maturity sum assured is paid to you.
(b) On paying premiums premiums for more than 4 years but less than 5 years, 90% of the reduced maturity sum assured is paid to you.
(c) On paying premiums premiums for more than 5 years, 100% of the reduced maturity sum assured is paid to you.
Based on how many premiums you have paid so far, all you have to do is insert the numbers in the formula above. If the guaranteed surrender value comes out to be higher, you will be paid the same and the life cover shall end immediately. If the special surrender value amounts higher, LIC will pay you this amount instead.
It is not recommended that you surrender your policy. You stand to lose money if you do so in addition to losing out on the insurance protection of the policy. However, if you are in urgent need of capital, you should first use the LIC Jeevan Saral surrender value after 10 years calculator to know how much you will get back. This might prompt you to look for alternative options to fund your needs instead of surrendering it and not getting the worth of your investment back.