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, reduced bonus, and surrender factor.

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 bonus amount adjusted for early surrender
• \( \text{Surrender Factor} \) — Percentage factor based on policy duration

Explanation: The surrender value represents the amount you would receive if you terminate your PLI policy before maturity, considering the premiums paid and any accrued bonuses.

3. Importance of Surrender Value Calculation

Details: Calculating surrender value helps policyholders understand the financial implications of terminating a policy early, allowing for informed decisions about policy continuation.

4. Using the Calculator

Tips: Enter the paid-up value and reduced bonus in rupees, and the surrender factor as a percentage. All values must be non-negative.

5. Frequently Asked Questions (FAQ)

Q1: What is a paid-up value in PLI?
A: Paid-up value is the amount that accumulates based on the premiums you've paid, after accounting for any deductions or charges.

Q2: How is reduced bonus calculated?
A: Reduced bonus is typically a percentage of the total bonus that would have been payable at maturity, adjusted for early surrender.

Q3: What determines the surrender factor?
A: The surrender factor depends on how long you've held the policy - generally increasing with each year of premium payments.

Q4: When does a policy acquire surrender value?
A: Most PLI policies acquire surrender value after 3 years of premium payments.

Q5: Is surrender value taxable?
A: Surrender values may be taxable if received before completing 5 years, depending on your country's tax laws.