1. What is PLI Surrender Value?

The PLI (Postal Life Insurance) Surrender Value is the amount payable to the policyholder if they decide to terminate the policy before its maturity date. It's calculated based on the paid-up value, accrued bonuses, and a surrender factor determined by the policy duration.

2. How Does the Calculator Work?

The calculator uses the surrender value formula:

Where:

• \( \text{Paid-up Value} \) — The accumulated value of premiums paid
• \( \text{Reduced Bonus} \) — The accrued bonuses adjusted for early surrender
• \( \text{Surrender Factor} \) — Percentage based on policy duration (provided by LIC)

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, especially during financial emergencies.

4. Using the Calculator

Tips: Enter the paid-up value and reduced bonus in rupees, and the surrender factor as a percentage (provided by LIC based on policy duration).

5. Frequently Asked Questions (FAQ)

Q1: When does a PLI policy acquire surrender value?
A: Typically after 3 years of premium payments, but this may vary by policy type.

Q2: How is the surrender factor determined?
A: LIC provides surrender factor tables based on policy duration - longer policies generally have higher factors.

Q3: Is surrender value taxable?
A: Surrender values may be taxable if received before completing 5 years, depending on the amount and policy type.

Q4: Can I get a loan against surrender value?
A: Yes, most policies allow loans up to a percentage of the surrender value.

Q5: Will I lose all benefits if I surrender my policy?
A: Yes, surrendering terminates all policy benefits including death benefits and maturity amounts.