LIC Jeevan Saral Surrender Value Calculator

It also offered a surrender value to policyholders who did not wish to continue with the policy after a certain period. You can estimate this amount using online LIC calculators.

While the LIC premium & maturity calculator does not calculate the surrender benefit amount, you can do so yourself very easily. LIC has clearly laid out specific terms to help users check the surrender value of LIC policies.

What is the LIC Jeevan Saral Surrender Value Calculator?

LIC Jeevan Saral plan 165 Surrender Value Calculator is a tool that estimates how much money you can encash out of the policy benefits if you stop paying premiums. Calculating this amount will help you decide if it is even worth surrendering it at this point and how much you stand to lose if you do so.

Surrendering a life insurance policy is usually not recommended because the amount you receive is significantly lower than what you actually invest in the premiums.

How to calculate the surrender value of LIC Jeevan Saral?

The LIC Jeevan Saral surrender value calculator factors in the total premiums paid by you till date. Here’s how you can calculate the guaranteed and the special surrender values of your Jeevan Saral policy -

Guaranteed Surrender Value (GSV)

Guaranteed Surrender Value is equal to 30% of the total premiums paid till date (excluding first year’s premium). Let’s take an example. Say that you have been paying a premium of Rs. 1 Lakh every year. At the end of the 6th year, you decide to surrender the policy. This brings your total premium paid to Rs. 6 Lakhs.
Now GSV does not include the 1st year’s premium. Therefore, it will be calculated as 30% of the premium paid for 5 years (30% of 5 lakh), which brings your GSV to Rs. 1.5 Lakhs.

Special Surrender Value

When you decide to surrender a policy before maturity, the maturity sum assured reduces based on the premiums paid till date. Now, the special surrender value is defined as a percentage of this reduced maturity sum assured. Here’s is how the LIC Jeevan Saral surrender value calculator estimates the special surrender value -

• If you have paid premiums for less than 4 years, 80% of the reduced maturity sum assured is paid to you.

• If you have paid premiums for more than 4 years but less than 5 years, 90% of the reduced maturity sum assured is paid to you.

• If you have paid premiums for more than 5 years, 100% of the reduced maturity sum assured is paid to you.

LIC Jeevan Saral Plan Overview

A combination of life insurance and investment, LIC Jeevan Saral is a traditional endowment plan. The policyholder can choose the premium amount and payment mode based on their requirements. In case of the policyholder’s death during the policy term, the nominee receives the applicable death benefit. Unlike term insurance, on survival until maturity in this policy, the policyholder receives the maturity benefit along with applicable Loyalty Additions.

Key Features of LIC Jeevan Saral

• Flexible Premium Payment: Policyholders can choose to pay premiums either monthly, quarterly, half-yearly or yearly.

• Death Benefit: If a person dies while the policy is in force their nominee is entitled to receive 250 times the monthly premium.

• Maturity Benefit: The policyholder receives the applicable maturity sum assured along with Loyalty Additions, if any.

• Loyalty Additions: You get profit sharing opportunities in the form of Loyalty Additions based on policy terms and LIC's profits.

• Rider Benefits: The plan offers optional additional Term Assurance and Accidental Disability and Death Benefit Riders.

• Surrender Benefit: The policy provides surrender and partial surrender facilities subject to applicable conditions.

• Loan Facility: LIC Jeevan Saral takes care of liquidity needs of its policyholders by giving them an option to get a loan against the policy as per LIC's terms.

Note: LIC Jeevan Saral has now been withdrawn by LIC and is no longer available for new purchases.

LIC Jeevan Saral Surrender Value

LIC Jeevan Saral allows the policyholder to surrender the policy after it has been in force for at least 3 full years. The surrender value is the higher of the Guaranteed Surrender Value (GSV) and Special Surrender Value (SSV).

The actual surrender amount may also include applicable Loyalty Additions, depending on the policy terms and duration.

Things to know before surrendering LIC Jeevan Saral

To use the LIC Jeevan Saral surrender value calculator you should be aware of the following -

• Lic Jeevan Saral can be surrendered only after paying premiums continuously for 3 years.

• You get paid either the guaranteed surrender value or the special surrender value. LIC calculates both and pays whichever is higher at the time of surrender.

• The guaranteed surrender value does not consider the premium paid for the 1st year and those paid for riders.

• Bonuses and loyalty additions are also paid as part of the surrender value but not the full amount.

You can use the guide to surrendering LIC policies before maturity to understand how surrender value works for all your LIC policies.

LIC Jeevan Saral Maturity Calculator

The LIC Jeevan Saral Plan 165 Maturity Calculator is an online application that allows the policyholder to get an estimated maturity value of LIC Jeevan Saral by entering the premium value, entry age, and policy term. The Jeevan Saral calculator takes into account the Maturity Sum Assured and Loyalty Additions (if applicable) to give you an estimated Maturity Value.

Policy holders can use an LIC calculator to learn about the amount of maturity benefit they can expect and plan their finances accordingly. The amount calculated, however, is an estimate and loyalty additions are not guaranteed and will vary.

To Sum Up!

While surrendering is not recommended, it might be the only option for people in urgent need of cash. However, if you are someone who has other options to explore, you would be wise to continue your policy and let it become a paid-up policy. This way the life cover remains intact and you still stand a chance to receive a portion of the assured benefits.

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