I have paid five annual premiums on my Jeevan Saral policy. I want to surrender the policy. How much money will I get on (i) total surrender (ii) special surrender (iii) partial surrender?
- B. Pandiyan Balu
LIC Jeevan Saral is an endowment policy. The Total surrender value of the policy will be the greater of the guaranteed surrender value and special surrender.
Guaranteed surrender value will be equal to 30% of the total amount of premiums paid excluding the premiums for the first year and all the extra premiums and premiums for accident benefit / term rider.
Special Surrender Value will be 100% of the Maturity Sum Assured, if five or more years' premiums have been paid. The Maturity Sum Assured for this will be the Maturity Sum Assured corresponding to the term for which premiums have been paid under the policy.
Partial surrender is allowed from 4th year on wards subject to certain terms and conditions.
We may not be able to offer you a specific answer as you haven't provided necessary details. Please contact your insurer and take an informed decision.
Though you will make losses on surrender, it is not wise to continue investing in a bad product. Such insurance-cum-investment plans typically offer a very small insurance cover and they also offer very modest returns. In future, buy a pure term insurance product to buy a life insurance cover. Invest in mutual funds to achieve your financial goals.