PLI Surrender Value Calculator

What is PLI Surrender Value Calculator?

A PLI Surrender Value Calculator is an online tool that helps policyholders estimate the amount they would receive from India Post if they choose to surrender their Postal Life Insurance policy before its maturity date. The Postal Life Insurance Surrender Value Calculator makes what would otherwise be a long and complex manual calculation simple, accurate, and accessible from the comfort of your home in just a few minutes.

This calculator is particularly useful for policyholders who are considering exiting their PLI policy mid-term and want to understand the financial implications before making a final decision. Whether you hold a Santosh (Endowment Assurance), Suraksha (Whole Life Assurance), or any other PLI plan, the PLI Surrender Value Calculator Online gives you a clear picture of what you stand to receive on surrendering your policy.

When Does a PLI Policy Attain Surrender Value ?

Before using the PLI Surrender Value Calculator, it's important to understand at what point your Postal Life Insurance policy becomes eligible for surrender. The eligibility depends on your policy term:

For EA (Endowment Assurance), WLA (Whole Life Assurance), YS (Yugal Suraksha), and CWLA (Convertible Whole Life Assurance) policies, the surrender facility is available after 3 years of premium payments. A bonus on the reduced sum assured is paid only if the policy is surrendered after 5 years of premium payment . It is an important consideration when deciding whether and when to surrender

How To Use the PLI Surrender Value Calculator?

Following is the step-by-step guide to using the PLI Santosh Surrender value calculator:

• Step 1: Visit the official website of the Postal life insurance

• Step 2: Click on the Life Insurance Surrender Value Calculator

• Step 3: Enter the basic details such as name, mobile number, policy term, plan name, premium payment mode, number of premium instalments paid, etc.,

• Step 4: After submitting these details, the PLI policy surrender value calculator immediately computes the approximate surrender value.

• Step 5: The life insurance surrender value will be displayed on the page.

What Are The Benefits Of Using PLI Surrender Value Calculator Online?

A PLI Surrender Value Calculator is a variable tool that helps quick and easy comparison of plans based on a number of parameters. Using a PLI calculator, insurance buyers can evaluate their requirements and make an informed decision about choosing the right plan. Here are some major benefits of using a PLI surrender value calculator online. Similarly, check the major benefits of term life insurance:

• It is a user-friendly online tool, accessible anytime and anywhere via your computer, to effortlessly calculate the surrender value of PLI.

• No financial expert assistance is required.

• Compare various PLI policies to identify the best option aligned with your family's financial commitments.

• Make informed decisions to manage your financial needs effectively.

• Evaluate the factors influencing the premium rates of your PLI policy.

How is PLI Surrender Value Calculated?

The PLI Surrender Value Calculator uses the following formula to determine the surrender value:

Surrender Value = (Paid-Up Value + Reduced Bonus) × Surrender Factor

Each component of this formula is calculated as follows:

Paid-Up Value:

Paid-Up Value = (Sum Assured × Number of Premiums Paid) ÷ Total Policy Term (in months or years)

Reduced Bonus:

Reduced Bonus = (Paid-Up Value × Policy Term × Existing PLI Bonus Rate) ÷ 1,000

Surrender Factor:
The surrender factor is derived from the PLI Surrender Factor Table, using the policyholder's age at the time of surrender, the policy plan type, and the number of years remaining to maturity. Specific inputs needed to compute the surrender factor include the date of surrender application, the date of birth of the insured, and the policy term.

Note on Bonus: Bonus is added to the policy each year in April for plans where premiums have been paid up to March of that year. Bonus will therefore be included for each year in which the premium was paid before March.

PLI Surrender Value Calculator After 3 Years

The PLI Surrender Value Calculator after 3 years is the most commonly used version of this tool, since most PLI policyholders become eligible to surrender only after completing 3 years of premium payments. At this point, the surrender value reflects:

• The paid-up value of your policy based on the number of premiums paid

• The reduced bonus accumulated, if applicable

• The surrender factor applicable to your policy based on your age and plan type

It is important to note that surrendering a PLI policy after 3 years but before 5 years will not include any bonus on the reduced sum assured. Policyholders who hold their policy for at least 5 years before surrendering will receive the bonus as well, which meaningfully increases the surrender payout.

How Does the PLI Surrender Value Calculator Work?

PLI Surrender value calculator uses PLI surrender factor table. This gives an estimate of how much you will receive on surrendering a PLI policy. The PLI Surrender Value Calculator determines the Surrender Value using the following formula:

Surrender value = (Paid-up value + Reduced Bonus) X Surrender factor.

Paid-up value = (Sum assured amount X Number of months/years premium)/Total term of the policy (number of months/years).

Reduced Bonus = (Paid-up value X Policy Term X existing bonus rate of PLI)/1000

Bonus is added each year in April for the plans that are paid up to March. So, in this way, bonuses will be added for the years for which the premium amount is paid in March.

The PLI Surrender factor can be calculated from the PLI Surrender factor table. Some details are required to complete the process such as date of surrender application, date of birth of insured, and Age as a factor can be used to compute the PLI factor in terms of days, months, and years.

PLI Surrender Factor Table To Calculate Surrender Value

Below is the illustration of the PLI Surrender Value Calculation sheet that can help you calculate the surrender amount easily:

How to Calculate the PLI Surrender Value?

Knowing how the surrender value of your Postal Life Insurance (PLI) policy is calculated can help you make informed decisions, especially if you're considering exiting the policy before maturity. Here's a simple way to understand the process:

• Identify your policy type and term: Different PLI plans, such as Santosh and Suraksha, have their own surrender value rules and payout structures.

• Meet the minimum premium requirement: Most PLI policies become eligible for surrender value only after at least 36 months' premiums have been paid.

• Calculate the surrender value: The general formula is:
  Surrender Value = (Paid-up Value × Surrender Value Factor) + Accrued Bonus (if applicable)

• Check the latest surrender value factors: These factors are prescribed by India Post and vary depending on the policy type and duration completed.

• Use a PLI surrender value calculator: For a quick estimate, you can use a Postal Life Insurance surrender value calculator, which computes the likely payout based on your policy details.

Should You Surrender or Take a Loan Against Your PLI Policy?

Before using the Postal Life Insurance Surrender Value Calculator to finalise a surrender, consider this comparison:

If your goal is temporary liquidity rather than a permanent exit from the policy, a loan against PLI is generally the more financially sound option, especially if the policy has accumulated significant bonus value.

How To Buy Postal Life Insurance (PLI)?

You can buy PLI from the following sources:

• Employees of the Department of Posts like the Inspector staff, Clerical staff, Postmen etc.

• Field Officers of Postal Life Insurance

• Gramin Dak Sevaks of Branch Post Office / Gramin Dak Ghar

• Direct Agents

Wrapping Up!

Understanding how this PLI surrender value is calculated at the policy's inception is crucial for making informed financial decisions down the line. The online PLI surrender value calculator simplifies this process with a few easy steps. It is user-friendly, easy to use and tells the value in a couple of minutes and helps in the comparison of various PLI policies for optimal decision-making.

Note: Check all the best term insurance plan in India.

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