1. What is LIC Jeevan Saral Surrender Value?

The LIC Jeevan Saral Surrender Value is the amount payable if the policyholder decides to terminate the policy before maturity. It's calculated based on premiums paid, sum assured, bonuses accrued, and surrender value factors.

2. How Does the Calculator Work?

The calculator uses the Jeevan Saral formula:

Where:

• \( Sum Assured \) — Basic sum assured under the policy (rupees)
• \( Premiums Paid \) — Number of premiums actually paid
• \( Premiums Payable \) — Total number of premiums payable
• \( Bonus \) — Accrued bonuses (rupees)
• \( SV Factor \) — Surrender value factor (percentage)

Explanation: The formula accounts for the proportion of premiums paid and applies the surrender value factor which increases with 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 surrender value factor varies by policy year - consult your policy document or LIC agent for the correct percentage.

5. Frequently Asked Questions (FAQ)

Q1: When does a Jeevan Saral policy acquire surrender value?
A: Typically after 3 full years' premiums have been paid, but exact terms depend on policy conditions.

Q2: How is the SV Factor determined?
A: LIC sets surrender value factors which increase with the duration of the policy, usually expressed as a percentage.

Q3: Is the surrender value taxable?
A: Surrender values may be taxable if received within 5 years of policy commencement, depending on premium amounts.

Q4: What happens to bonuses on surrender?
A: Only vested bonuses are included in the surrender value calculation.

Q5: Can I get loan against Jeevan Saral policy?
A: Yes, loan is available after 3 years, generally up to 90% of surrender value.