to cancel the policy and withdraw from LIC.
The repurchase value is only due after three full years of LIC paid premiums. If it is a participation so the bonus will be awarded according to the applicable rules.
The waiver of the policy is not recommended as the LIC Policy surrender value would always be relatively low.
If you decide to take out another insurance at that time, so you will receive additional insurance at a much higher premium as your age would have increased and since the previous insurance was taken out.
Therefore, the best strategy for maintaining life insurance protection is to maintain the previous guidelines and preserve all fonts without expiring.
There Are Two Types of LIC Policy Surrender Value
1) Guaranteed cash value
- If your policy is eligible for this repurchase value. It must be stated in the bond and payable after 3 years.
- These are usually 30% of the premiums paid without the bonus payments for the first year. It also excludes any additional bonus paid for runners., taxes and bonuses that you may have received from the LIC.
- However, the percentage of this guaranteed present value depends on the duration of the policy. and the year of the policy in which the policy was purchased.
- For example, say your annual bonus is Rs 1 lakh and you have paid for four years.
- Total premiums paid = Rs.4 lakh.
- Premium without 1st year = Rs.3 lakh.
- Then the guaranteed present value equals 30% of the premiums paid (with the exception of the premium for the first year). So 30% of the 3,000,000 rupees will be 90,000 rupees, you get.
Remember that this buyback value does not add up the already accumulated bonus.
2) Special Repayment Value
80% of the sum insured at maturity if the premiums have been paid for three years or more but less than four years;
90% of the sum insured if the premiums were paid for at least 4 years but less than 5 years and 100% of the sum insured if the premiums were paid for at least 5 years.
The maturity amount insured for this principal amount is the maturity amount. Corresponding to the term for which the premiums were paid in accordance with the LIC policy.
Company’s Policies on Surrender Value
In practice, the company pays a special repayment amount, which is usually higher than the guaranteed cash value.
This value depends on the term for which the premiums were paid and the duration of the policy at the time of repayment.
Under certain circumstances, the repurchase value may be lower than the total premiums paid if the contract is terminated prematurely.
The Company will periodically review the amount of the Convertible Value to be paid in accordance with its plans. based on the economic environment, experience and other factors.
LIC Policy Surrender Value For LIC Jeevan Saral Plan
- Guaranteed Repurchase Value: The guaranteed repurchase value is equal to 30%. of the total premiums paid, excluding first year bonuses and additional premiums.
- Special repayment amount: 80% of the sum insured when due, if you have paid premiums for 3 years or more but less than 4 years.
- 90% of the sum insured when due, if you paid 4 years or more but less than 5 years.
- And 100% of the sum insured when due, if the premiums have been paid for 5 years or more. As a result, the three different strategies give you different cash values based on these rules.
LIC Jeevan Saral is a staffing policy that avoids spending, just like other plans in this category. If you survive the term of the policy, you will receive a sum insured and a loyalty bonus.
Loyalty increases can be paid at the discretion of the insurer from the 10th year of insurance.
What is The Significance Of Added Value And The Total Value Released?
If the premiums have been paid for at least three consecutive years., and the subsequent premiums have not been paid within the grace period. These unused policies is known as shared policies.
The sum insured is reduced to a proportionate amount that was available at the time the contract was concluded.
For example, if the insured sum is Rs 5 lakh and., the total number of premiums to be paid is 20 years and the premium is one year and the premiums are paid for 10 years. Then finish the policy.
Such abandoned policy is called liberated politics. This is calculated as follows.
Paid value = (number of premiums paid / number of premiums to be paid) * Sum insured.
Released value = (10/20) * Rs.5 lakh = Rs.2,50,000.
So the police will be provided from the eleventh., year with a sum insured of 2,500,000 rupees instead of 5,000,000 rupees.
In addition to this paid amount, the bonus accumulated by the tenth year will be added. This is called the total shared value. Therefore, the sum of the shared value = the shared value + the accumulated bonus.
If LIC declares a future bonus or guaranteed additions to the product. your contract will not be eligible for such a bonus or AG. You will only receive the full amount if the policyholder falls due or dies.
The total amount paid will be payable to you and your nominee when due (if your death occurs during the insurance period).
What Significance Does The Special Repayment Value Have Under Surrender Value?
The repayment value is simply the percentage of the total amount paid and is calculated as follows.
Repurchase value = (sum insured * (number of premiums paid / number of premiums to be paid) + total bonus received) * surrender value factor.
Simply put special repurchase value = total value being released * surrender value factor.
How To Take Up The LIC Policy Surrender Value ?
First, keep in mind that the LIC subscription policy is currently not available online so In addition, you may only submit the LIC Policy from your LIC office.
The service branch may be the branch where you purchased the policy. Otherwise, if you have changed the branches. This particular LIC. branch represents the service branch for you.
This is because all of your contract document., such as offer forms and credit details and all other details, are only available at the branch office.
Also remember that you must apply but for cancellation of credit insurance at the branch.
Also read: LIC Health Insurance Plans: LIC Jeevan Arogya and LIC Cancer Cover.
Required Documents for LIC Policy Surrender Value
- Original policy bond and.
- Download LIC Policy Surrender Form. you can so take the print out of this LIC Policy Surrender form and proceed.
- Canceled cheque leaf form the bank and bank passbook photocopy .and Now LIC issue the payment directly to a beneficiary bank account.
- LIC’s NEFT Form.
- ID Proof like Aadhaar, Driving License, PAN Card.
Within 5-10 days the fund will be transferred to your bank.
Frequently Asked Questions
Ans.This policy can be revoked at any time. However, if you return it three years ago, you will not get paid back. In the event of a withdrawal after three years of insurance. the insurer pays a guaranteed present value of 30% of all premiums paid after deduction of the premium for the first year.
Ans.Check the status of the LIC policy for present value so. You can calculate the present value of your LIC policy using the following simple
Formula: Insured base amount (total number of premiums to be paid / number of premiums to be paid) + total bonus you receive x surrender value factor.
Ans. LIC policies may be redeemed for cash for at least 3 years after the premiums have been paid. A repurchase value is not available if the policies are canceled before the premiums have been paid for at least 3 years
Ans. To reactivate the cancellation insurance, all unpaid insurance premiums must be paid with the interest due on them.And The amount to be refilled or for the period since termination of the contract may be subject to a retrial penalty.