Should I Surrender My Jeevan Saral Policy After 10 Years?

Can I surrender Jeevan Saral after 10 years?

LIC Jeevan Saral – Benefits The Maturity Sum Assured plus Loyalty additions, if any, is payable in a lump sum.

Premiums paid are exempted from income tax-free for Jeevan Saral policy under Sec 80 C.

This policy can only be surrendered after the completion of 3 years..

How is maturity amount calculated in LIC Jeevan Saral?

LIC’s Jeevan Saral (165) – Complete CalculatorEnter age at entry* Minimum Age 12; Maximum Age 60.Enter Term* Min 10 Years; Max 35 Years.Death Sum Assured. Min Sum Insured 62,500.Basic Monthly Premium. Minimum Monthly Premium Rs 250.EP Counter.Basic Maturity Sum Assured.Selected monthly premium.DAB Premium.More items…

What is special surrender value?

Special surrender value = (Original sum assured * (No. of premiums paid/No. of premiums payable) + total bonus received) * surrender value factor. When one stops paying premiums after a certain period, the policy continues but with lower sum assured. This sum assured is called the paid up value.

How can I check my LIC policy surrender value?

How to Check the Surrender Value of your LIC Policy? You can calculate the surrender value of your policy using this simple formula [Basic sum assured (Number of premiums paid/Total number of premiums payable) + Total bonus received] x Surrender Value Factor.

Is it good to surrender LIC policy?

Surrender value is payable only after three full years premiums are paid to LIC. More over if it is a participating policy the Bonus get attached to it as per prevalent rules. Surrender of policy is not recommended since the surrender value would always be proportionately low.

What is loyalty addition in LIC Jeevan Saral?

Loyalty Addition (LA) in Jeevan Saral policy depends on the duration of the policy completed with full sum assured and, the annual premium band of the policy. An annual premium band can be calculated on the basis of monthly premium in Jeevan Saral. Higher the premium, higher is the loyalty addition in Jeevan Saral.

How is LIC maturity amount calculated?

Maturity benefit would be equal to the Sum Assured + Bonus Amounts which have been received throughout the policy term + any Final Addition Bonus if declared. Now whenever the death of the policyholder happens (even after the policy term), the nominee will additionally get the Sum Assured amount as the Death Benefit.

How the surrender value is calculated?

If you discontinue the policy, the amount you will get is called the special surrender value. This is arrived at by multiplying the total paid-up value (paid-up value + bonus) with a multiplier called the surrender value factor. The surrender value factor is a percentage of paid-up value plus bonus.

Why Jeevan Saral is closed?

The spotlight is back on endowment plans. Life Insurance Corporation of India’s (LIC) Jeevan Saral, withdrawn in 2014, was in the news recently after a PIL was filed in the Supreme Court , alleging that LIC had mis-sold the product by misleading policyholders.

Will I get bonus if I surrender my LIC policy?

Once you have surrendered your LIC policy, the insurer will provide you with a portion of money known as ‘accumulated bonus’ along with the premiums that you have paid for that period of time.

How can I cancel my LIC policy and get money back?

Documents Required for Surrender LIC PolicyOriginal Policy Bond.Download LIC Policy Surrender Form No. … Bank cancelled cheque leaf (your name should be printed on cheque) or bank passbook photocopy. … Fill LIC’s NEFT Form, if you are not using the above said Surrender Form and submit the same.More items…•

What are the benefits of Jeevan Saral plan 165?

LIC Jeevan Saral Plan Details – Table No. 165 This plan offers Double Death Benefit of Sum Assured + Return of Premium. In this plan, the premium amount is decided by the policyholder and he gets 250 times the monthly premium as Sum Assured.

What happens if you surrender LIC policy after 10 years?

No. You will get a portion of your money only if you have paid consecutive premiums for two years (if premium paying term is less than 10 years), and three years (if premium paying term is more than 10 years). If you surrender before this, you do not get back any money.

What is surrender value of Jeevan Saral policy?

Guaranteed Surrender Value: Guaranteed Surrender value is equal to 30% of the total amount of premiums paid excluding the premiums for the first year and all the extra premiums. Special Surrender Value: 80% of Maturity Sum Assured if you have paid premiums for 3 or more years but less than 4 years.

Should I surrender my Jeevan Saral policy?

Guaranteed Surrender: The policy can be surrendered only after it has crossed at least 3 years. … In case if the insured stop paying the premium after the completion of 3 policy years, LIC Jeevan Saral policy acquires a paid up value for the reduced sum assured amount and the policy continues to be enforce.