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Surrendering two insurance plans

Buy a term insurance policy for your life insurance needs and invest in diversified equity mutual funds to meet your long-term financial goals

I have been paying a premium of ₹21,510 per year since 2008 for Jeevan Anand policy and ₹24,260 per year for Jeevan Saral policy since 2011. Both policies are for a term of 16 years. I was fooled by LIC agents at the time of taking the policy. Now I am seriously thinking of surrendering these policies immediately. Please let me know the losses which I should bear due to surrender. It will be an eye-opener.
- Puneet Agrawal

You have taken the right decision. You may read about the two policies here:
LIC Jeevan Saral
LIC Jeevan Anand

LIC Jeevan Anand: The guaranteed surrender value is 30% of the basic premiums paid, excluding the first year's premium and any extra premiums paid. Considering you have paid 8 premiums till date, you will receive a guaranteed surrender value of ₹. 45171 {30%*(total premiums paid - first year's premium)}. The insurer might pay a special surrender value higher than the guaranteed one at its own discretion.

LIC Jeevan Saral: The guaranteed surrender value is 30% of the basic premiums paid excluding the first year's premium and any extra premiums paid. Considering you have paid 5 premiums till date, you will receive a guaranteed surrender value of ₹. 29112 {30%*(total premiums paid - first year's premium)}.

LIC will pay a special surrender value equal to 100% of the Maturity Sum Assured, if 5 or more years' premiums have been paid. You have paid 5 years' premiums. The Maturity Sum Assured refers to the Maturity Sum Assured corresponding to the term for which premiums have been paid under the policy. You will be more clear once you reach LIC to surrender this policy.

Buy a term insurance policy for your life insurance needs and invest in diversified equity mutual funds or other savings instruments depending on your goals and risk appetite.

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