How do we calculate the total amount after terminating a traditional plan ?

POSTED BY Hpriya246 ON August 19, 2014 5:45 pm ONE COMMENT

Hello,

Pls tell me how to calculate the total amount we get after terminating a policy for which premium is paid for 3 years?

One reply on this article “How do we calculate the total amount after terminating a traditional plan ?”

  1. Lokesh Jain says:
    August 24, 2014 at 8:59 pm

    Hi Hpriya,

    There is no standard formula to calculate surrender value. It is different for all policies and all insurance companies too. You can find a column of surrender value in your insurance policy document where you will be given some idea of how your insurance company calculates the surrender value.

    In your case, as you say (I assume) you have paid premium for 3 years, you would get an approx 30% of your premiums paid and a small percentage (10-15%) of bonuses accrued if any. However, this is no thumb rule and as i have earlier said, it differs from company to company and policy to policy.

    Reply

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