LIC Jeevan Umang Surrender Value Calculator (2024)

FAQs

How is surrender value calculated in Jeevan Umang? ›

Special Surrender Value is (paid-up sum assured + Accumulated Bonus) multiplied by special surrender value factor. Paid-up sum assured is calculated by multiplying Basic Sum Assured by a factor of Total Number of Premium paid/ Total number of premiums to be paid.

It is equal to 8% of the basic sum assured amount. The same amount is offered every year till the policyholder survives or till the last plan anniversary before the date of maturity (whichever event occurs earlier).

Guaranteed Surrender Value = 30% X Total premiums paid. The first-year premiums and all the added premiums or premiums for accident benefit or the term rider are excluded from the same. The percentage to be paid may depend on the policy plan and the year in which an individual will surrender the policy.

30% X the total amount of premiums paid is the Guaranteed Surrender Value. All additional premiums, premiums for accident benefits, and term rider premiums are not included in the first-year premiums or any other premiums.

Total bonus accrued = ((50 x 10,00,000/1,000) x 10) which equals Rs. 5,00,000. The guaranteed surrender value factor for a policy term of 20 years and policy surrender in the 11th year is 60% (as mentioned in LIC New Jeevan Anand's brochure).

Special Surrender Value

If in case, the insurance holder has paid premiums for more than 4 years and less than 5 years, then 90% of the complete maturity sum is provided. If the policyholder is paying premiums for more than 5 years, then he/she receives 100% of the sum assured (maturity amount).

Ans: Yes, LIC Jeevan Umang is a good policy as it offers coverage till the age of 100. In addition to this, the plan provides annual survival benefits once the premium payment tenure is completed.

Survival benefits : In case the insured survives the policy payment term, then 8% of the sum assured is paid every year as a guaranteed survival benefit. This benefit is paid till the maturity of the plan or the death of the insured, whichever is earlier. Rebates : LIC Jeevan Umang offers two types of rebates.

8% of the Sum Assured is paid every year as money back on survival at the end of the policy term. Large Sum Assured available under this plan. Riders like LIC Accidental Death Disability Benefit Rider and Term Rider are available under this plan.

Implications of LIC Policy Withdrawal After 5 Years

The contract between the insurer and insured is voided, the life-insurance element will cease to exist once the policyholder has surrendered their policy. Thus any benefits before available will no longer be valid.

How can I get my LIC surrender value online? ›

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.

Visit the nearest LIC branch and avail a surrender discharge form. Submit the filled form along with the required documents. After submitting the form and documents, the insurer will process the surrendering of the LIC policy. The surrender value will be provided to you when the request is approved by the insurer.

Types of Surrenders in a Conventional LIC Policy:

Guaranteed surrender value is essentially 30% of the overall premiums that you have paid so far. This, however, excludes the premiums that were paid during the first year of the policy, extra premiums, and the ones paid towards riders (accident rider).

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.

If your policy has lapsed due to non-payment of premiums within the due date, the terms and conditions of the policy contract are rendered void, till you revive your policy. Always keep your policy in force to ensure that your family gets their financial protection assured by your policy.

LIC's Jeevan Umang plan offers a combination of income and protection to your family. This plan provides for annual survival benefits from the end of the premium paying term till maturity and a lump sum payment at the time of maturity or on death of the policyholder during the policy term.

In Jeevan Umang Policy, the premium needs to paid for 15, 20, 25 or 30 years depending on the term opted for. After the completion premium payment term, this policy provides 8% of Basic Sum Assured every year up to 99 years of policyholder's age and maturity on completion of 100 years of age.

What is special surrender value? ›

The special surrender value gets calculated in cases where the policyholder stops paying premiums, but the plan continues until they choose to surrender it. Once the premium payments stop, the sum assured may decrease and the lower amount is known as the paid-up value.

A policyholder will only be able to surrender his/her policy after having paid the premiums diligently for 3 years. Upon surrendering the policy, LIC provides a certain portion of money to the policyholder. This amount of money is known as surrender value.

Under the guaranteed surrender value, the policyholder can surrender their policy only after the completion of 3 years. This means that the premium has to be paid for a minimum period of 3 years. If you surrender after 3 years, the surrender value will be around 30% of the premiums paid till date.

The surrender value of a life insurance policy is the amount of money that the policyholder is entitled to receive if they decide to cancel or surrender their policy before it matures.

Surrender value of an LIC policy should be credited in 15 working days else LIC is liable to pay interest .

Surrendering a life insurance policy means canceling the policy and receiving its surrender value, which is the cash value minus any surrender fees. If you go this route, the coverage ends. Your beneficiaries will not receive a death benefit when you die.

The policyholder should visit the nearest branch of LIC and avail a surrender discharge voucher. The Surrender Discharge Voucher is called Form 5074. The form should be filled and submitted with the relevant documents. Once the form and the documents are submitted, the company would process the surrender of the policy.

Yes, policyholders can surrender LIC policy online before the completion of the policy term. This closing is referred to as LIC policy closing or surrendering.

Do you get your money back if you cancel your life insurance? The answer to this is usually no. Protection insurance is a simple product that protects you financially against death and illness while you pay premiums. If you don't pay your insurance premiums, you aren't protected.

If your policy has lapsed due to non-payment of premiums within the due date, the terms and conditions of the policy contract are rendered void, till you revive your policy. A lapsed policy has to be revived by payment of the accumulated premiums with interest as well as giving the health requirements as required.

How is surrender value determined? ›

Usually, this special surrender value is determined with the formula - (Accrued bonuses + Paid-up value) multiplied by the surrender value factor. The paid-up value is calculated as the Basic sum assured multiplied by the number of premiums payable or the number of premiums paid.

Note that the paid-up value is the amount you will receive when the policy matures or the money the nominee receives if you were die. The surrender value factor is zero for the first three years and keeps rising from third year onwards. It differs from company to company and depends on various factors.

The cash surrender value of an annuity is equal to the total contributions and accumulated earnings, minus prior withdrawals and outstanding loans. A policy's cash value may be used as collateral for low-interest policy loans.

Cash value, or account value, is equal to the sum of money that builds inside a cash-value–generating annuity or permanent life insurance policy. Surrender value is the amount you'll receive if you try to withdraw all of your cash value, and it may be less than cash value if surrender fees are charged.

Definition: A policyholder can terminate the life insurance before it reaches maturity by surrendering the policy to the insurance company. Once this is done, the insurer pays a cash value known as the policy's surrender value.

Surrender fees vary among insurance companies that offer annuity and insurance contracts. A typical annuity surrender fee could be 10% of the funds contributed to the contract within the first year it is effective. For each successive year of the contract, the surrender fee might drop by 1%.

The cash surrender value gradually increases over time, as payments are made into the policy or annuity. The amount of the valuation increase is the excess of payments and interest income over the cost of the life insurance portion of the package (if any).

The difference between cash value and surrender value is that cash value is the amount saved in the policy, and cash surrender value is how much you'll get if you cancel the policy, less any outstanding debts and surrender charges.

Surrender Value Meaning

Surrender Value in Insurance is the amount which insurance company will pay you, as a policyholder, when you decide to terminate the policy before the maturity. There is often a misconception that it is not possible to surrender your term insurance.

The $10,000 refers to the face value of the policy, otherwise known as the death benefit, and does not represent the cash value of life insurance policy. A $10,000 term life insurance policy has no cash value.

What is lump sum surrender value? ›

Your cash surrender value is the amount of cash you've built, minus any surrender charges or fees. Those charges diminish with time, so the longer you've had your account, the closer the cash surrender value will be to the cash value. In most cases, your policy's cash surrender value will be paid in a lump sum.