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LIC Jeevan Saral Surrender Value After 10 Years Calculator

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Amongst the various offerings of the Life Insurance Corporation (LIC) of India is an online calculator, known as the LIC Jeevan Saral Surrender Value Calculator. This tool is for policyholders to gauge the surrender value of their LIC Jeevan Saral policy.

While the Jeevan Saral policy is no longer available, existing policyholders looking to cash out can utilise this calculator to ascertain the amount they could receive upon surrendering.

Let’s find out more about the LIC Jeevan Saral Surrender Value After 10 Years Calculator and other related aspects in the article below.

Overview of the LIC Jeevan Saral Surrender Value Calculator

LIC Jeevan Surrender Value Calculator, offered by LIC, provides policyholders with a ballpark figure that they can expect in case they decide to terminate their policy before its due maturity date. The surrender value is a sum derived based on various parameters such as policy type, tenure, paid premiums, and associated fees or charges.

The Ideal Time to Surrender LIC Jeevan Saral Policy

You have the option to surrender the LIC Jeevan Saral policy after consistently paying premiums for a minimum of 3 years. The closer the policy is to its maturity, the more you stand to receive. The surrender value is based on the total premiums you've contributed over time.

When surrendering, LIC will grant either the guaranteed surrender value or the special surrender value, depending on which holds a higher monetary value at the time. This estimated figure can be easily calculated using this calculator.

Determining the LIC Jeevan Saral Surrender Value After 10 Years

 The calculator factors in the following criteria -

  • Guaranteed Surrender Value

After paying premiums for three years, you're entitled to a guaranteed surrender value equivalent to 30% of total premiums minus the initial year's premium and additional rider costs. For policies that have been maintained for over 10 years, LIC sets a specific guaranteed surrender value rate. 

The value is computed in the following manner - 

(Total premiums x Guaranteed surrender value rate) + (Bonus x Surrender value rate for bonus).

  • Special Surrender Value 

This is determined by -

(Original sum assured x (number of premiums paid / total premiums payable) + accumulated bonus) * surrender value rate.

For LIC Jeevan Saral, this value is based upon the reduced maturity sum assured, which varies with the number of premiums paid. The criteria are as follows -

  • Under 4 years of premium payment: 80% of the reduced maturity sum 
  • Over 4 years but under 5 years of payment: 90% of reduced maturity sum
  • Payments beyond 5 years: 100% of the reduced maturity sum

To estimate the LIC Jeevan surrender value, simply enter the relevant details into the provided formula. Whichever amount is higher — be it the guaranteed or the special surrender value — will be what LIC compensates you with.

Bottom Line

Surrendering a policy is generally discouraged, as you might incur financial losses and miss out on the policy's protection benefits. However, if faced with dire financial needs, it's advisable to utilise the LIC Jeevan Saral Surrender Value Calculator for 10 years to get an idea of potential returns. This insight can guide you towards other financial solutions that don't involve surrendering the policy, thus ensuring that you retain the value of your investment.

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