1. What is PLI Santosh Surrender Value?

The surrender value is the amount a policyholder receives when they voluntarily terminate their PLI Santosh policy before its maturity date. It's calculated based on the paid-up value, reduced bonus, and surrender factor.

2. How Does the Calculator Work?

The calculator uses the surrender value formula:

Where:

• Paid-up Value — The accumulated value of premiums paid
• Reduced Bonus — The bonus amount adjusted for early surrender
• Surrender Factor — Percentage determined by policy duration and terms

Explanation: The surrender value represents the cash value available to the policyholder upon early termination of the policy.

3. Importance of Surrender Value Calculation

Details: Understanding surrender value helps policyholders make informed decisions about policy continuation versus early termination.

4. Using the Calculator

Tips: Enter all values in rupees except surrender factor which is in percentage. All values must be non-negative.

5. Frequently Asked Questions (FAQ)

Q1: When does a policy acquire surrender value?
A: Typically after 3 full years of premium payments for PLI Santosh policies.

Q2: How is the surrender factor determined?
A: It depends on policy duration - higher for longer-held policies, often ranging from 30% to 90%.

Q3: Is surrender value taxable?
A: Generally yes, if it exceeds total premiums paid. Consult a tax advisor for specifics.

Q4: What's the difference between paid-up and surrender value?
A: Paid-up value keeps policy active with reduced benefits, while surrender value terminates the policy.

Q5: Can I get my full premium back if I surrender?
A: No, surrender value is typically less than total premiums paid, especially in early years.