5 replies on this article “I need to surrender Jeevan Tarang on my sons life after paid up …advice me”

1. MADHUKARA A.R says:

   January 13, 2013 at 6:01 pm

   Dear friends i have not defaulted the payment of premium until now i am asking as the commencement of the risk is scheduled to 28/03/18 , wheather i continue to pay the remaining premiums on time and exit after 3 years. My question is wheather i will stop pay the remaining premiums and exit , as my son is comes to the catogory of bellow 12 year old that is too before commencement of risk period, can i get 90% of my 2 year premium back

   still not clear on this issue …please any one

   Reply
   1. Free Financial Calculators says:

      January 13, 2013 at 6:08 pm

      Yes you should pay for 3 years as I wrote earlier. The second link I sent has all the details

      To quote
      After completion of at least three policy years and at least three full years’ premiums have been paid …..

      …..if the age at entry of the Life Assured is less than or equal to 12 years, the guaranteed surrender value will be equal to

      o Before commencement of risk: 90% of the total amount of premiums (excluding premiums paid for the first year and any extras) paid.

      Is that not clear enough?

      The only issue was whether GSV was higher than SSV or not.
      My understanding from above link is that GSV is higher than SSV
      so you will get GSV as per your understanding

      Reply
2. Free Financial Calculators says:

   January 13, 2013 at 5:41 pm

   Sorry I sent you the wrong link above:

   Here is the right one:

   http://lic.gensoftindia.co.in/Circuler/Jeevan%20Tarang%20%28178%29.aspx

   GSV (guaranteed surrender value)
   Before commencement of risk: 90% of the total amount of premiums (excluding premiums paid for the first year and any extras) paid.

   SSV (special surrender value)
   During the Accumulation Period: The Special Surrender Value will be the discounted value of the Paid-up Sum Assured and the vested revisionary bonuses. The discounting factor shall be the surrender factors being used under our Endowment Assurance plan. This will be applicable to both the single premium and regular premium policies. These are subject to revision from time to time.

   Since the paid up value for you is 28000 and SSV is liked to SSV you will get the GSV as it will be higher

   Reply
3. Free Financial Calculators says:

   January 13, 2013 at 5:18 pm

   There are two types of surrender values: special and guaranteed. You will get which is highest

   Guaranteed Surrender Value = (30% of all premiums paid – 1st year’s premium) after 3 policy years for Regular Premiums

   Please use this to calculate the special surrender value

   http://lic-policies.blogspot.in/2009/02/surrender-value-under-jeevan-saral-plan.html

   The most important thing is for you to stop paying premiums AFTER.3 policy years. Another option is to just make the policy paid up. The sum assured will reduce to 28000 and you will get it at the end of the policy along with some bonus. This will be a small sum since inflation will reduce its value.

   if you surrender you with a sum which can be invested to get better returns. So surrendering after 3 policy years is better

   Reply
4. Ashal Jauhari says:

   January 13, 2013 at 5:08 pm

   Dear Madhu, yes you should get that much amount. Still please clarify this issue with LIC office also.

   thanks

   Ashal

   Reply

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