Jeevan Saral Plan 165 Surrender Value Calculator

Jeevan Saral Plan 165 Surrender Value Formula:

\[ SSV = (Sum Assured \times (Premiums Paid / Premiums Payable) + Bonus) \times SV Factor \]

Sum Assured:

rupees

Premiums Paid:

number

Premiums Payable:

number

Bonus:

rupees

SV Factor:

percentage

Surrender Value (SSV):

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1. What is Jeevan Saral Plan 165?

Jeevan Saral Plan 165 is a life insurance policy from LIC (Life Insurance Corporation of India) that provides both insurance coverage and savings benefits. The surrender value is the amount payable if the policyholder decides to terminate the policy before maturity.

2. How Does the Surrender Value Calculator Work?

The calculator uses the Jeevan Saral Plan 165 surrender value formula:

\[ SSV = (Sum Assured \times (Premiums Paid / Premiums Payable) + Bonus) \times SV Factor \]

Where:

\( Sum Assured \) — The guaranteed sum assured amount in rupees
\( Premiums Paid \) — Number of premiums actually paid
\( Premiums Payable \) — Total number of premiums payable under the policy
\( Bonus \) — Any accrued bonus amount in rupees
\( SV Factor \) — Surrender value factor as a percentage

Explanation: The formula calculates the proportionate sum assured based on premiums paid, adds any bonuses, then applies the surrender value factor which varies by policy duration.

3. Importance of Surrender Value Calculation

Details: Knowing the surrender value helps policyholders make informed decisions about continuing or terminating their policy, especially during financial difficulties.

4. Using the Calculator

Tips: Enter all values accurately. The sum assured and bonus should be in rupees. Premiums paid should not exceed premiums payable. SV factor is typically provided by LIC based on policy duration.

5. Frequently Asked Questions (FAQ)

Q1: When can I surrender my Jeevan Saral policy?
A: Typically after payment of premiums for at least 3 full years, but check your policy terms.

Q2: How is the SV factor determined?
A: LIC determines SV factors based on policy duration and other factors. These are published in their surrender value tables.

Q3: Will I get back all my premiums if I surrender?
A: Usually not. Early surrender typically results in lower returns than maturity benefits.

Q4: Are there tax implications for surrender?
A: Yes, surrendered policies may have different tax treatments than matured policies. Consult a tax advisor.

Q5: Should I surrender or take a loan against my policy?
A: Policy loans may be better for temporary needs as they keep the policy active while providing funds.