I need to surrender Jeevan Tarang on my sons life after paid up …advice me

POSTED BY MADHUKARA A.R ON January 13, 2013 4:01 pm COMMENTS (5)

HI MANISH

I HAVE TAKEN LIC JEEVAN TARANG POLICY ON MY SONS NAME ON 30-3-2011

MY SON DATE OF BIRTH IS 30-03-2010  (AT THE TIME OF TAKING POLICY HIS AGE IS 1Y)

SA= 280000-00

DATE OF COMMENCEMENT OF RISK 28/03/18

PREMIUM= 7163 HLY

TERM 30 YEARS 

ALREADY PAID 3 INSTALLMENTS OF PREMIUMS.

I WANT TO SURRENDER AFTER 3YEAR, MY QUESTION IS

“As the commencement of risk scheduled to 28/03/18, and as per clause

7.

a)single premium policy   *********NA

b)annual premium policy *********

In case the age  of life assured under the policy is less then or equal to 12 years the fallowing will apply

   (I) surrender before the date of commencement of risk: 90%of the total amount of premium paid

WILL I GET IT?   I THINK I WILL  SAFLY GET 2 YEARS PREMIUMS 90% .. IS IT GOOD EXIT 

And not but least thanks for eye openner articles in jago investor

 

 

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:

    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

    1. 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

  2. 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

  3. 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

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

    thanks

    Ashal

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