LIC Jeevan Saral Surrender Value Calculator

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 term to help users check the surrender value of LIC policies.

What is the LIC Jeevan Saral Surrender Value Calculator?

It is a tool that calculates 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 policy is usually not recommended because the amount you receive is significantly lower than what you actually invest in the premiums.

Things to know before surrendering LIC Jeevan Saral

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

• It 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.

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 -

1. Guaranteed Surrender Value (GSV)

   It is equal to 30% of the total premiums paid till date. 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, which brings your GSV to Rs. 1.5 Lakhs.

2. 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, 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.

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 you 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.