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I have a LIC Jeevan Saral (Plan No. 165, commencement date 28/04/2011) and paying half-yearly premium of ₹30,325 since then. I have paid 10 premiums till now and my next premium due is 20/04/2016. If I surrender this policy now, how much do I get back and I don't want to make my policy paid up. I already have a term insurance, so I don t need this plan. Also please tell me how do I proceed to surrender this policy.
- Tapish Khandelwal
LIC Jeevan Saral is an endowment policy which is silent on its expenses just like other plans in this category. Though you will make losses upon 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. The surrender value 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. This will be 163755 (30% of 545850)
Special Surrender Value will be 100% of the Maturity Sum Assured, if 5 or more years' premiums have been paid. The Maturity Sum Assured for this para will be the Maturity Sum Assured corresponding to the term for which premiums have been paid under the policy. For exact details of the surrender value contact your insurer.
For surrender, you can contact your insurance agent or the nearest LIC branch and fill the surrender application form along with a cancelled cheque and a mandate form for direct credit to your bank account.
This article was originally published on April 20, 2016.
Disclaimer: This content is for information only and should not be considered investment advice or a recommendation.
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