Surrender value in Jeevan Anand | Value Research The guaranteed surrender value of the policy is 30% of total premiums paid minus the first year's premium
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Surrender value in Jeevan Anand

The guaranteed surrender value of the policy is 30% of total premiums paid minus the first year's premium

I have two policies of LIC Jeevan Anand. I bought the first policy in 2009 and paid premiums for all six years. This policy is for 25 years and the sum assured is ₹5 lakh. The second policy was bought in 2013 and I paid premiums for two years. This policy is for 22 years and the sum assured is ₹5 lakh. I recently realised that the returns on this policy are around 5% and it does not even beat inflation. I intend to stop paying the premiums and just buy a term insurance.

My query is if I surrender the first policy now, how much money would I get now? Alternatively, if I do not surrender now but stop paying the premium, and this policy matures in 2024, what amount will I receive? Is there any advantage that this method has over surrendering the policy? I will surrender the second policy. But please help me understand the way I should handle the first policy.
- Sunita

The guaranteed surrender value of the policy is 30% of total premiums paid minus the first year's premium. As you have completed more than three years (minimum requirement), you can surrender it now. However, you should get in touch with your insurer to find out the exact surrender value and as the insurer can pay a slightly higher sum at its discretion. It may not be possible for you to keep the policy alive without paying the premium. Endowment plans typically get lapsed if the premium is not paid within the grace period. For more details on this policy, refer the following links:
https://goo.gl/qa83oe
https://goo.gl/NCprrD


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