Jeevan Saral policy surrender

POSTED BY Avanti ON November 14, 2011 1:08 pm COMMENTS (40)

In 2008 my father purchases LIC Jeevan Saral policy with Sum Assure of 50000 of 20 Years for me when I am in college. My father purchases the policy from his LIC agent friend.
Now I am married and doing a job. So I want to purchase Term Insurance plan for myself.

For LIC Jeevan Saral I pay premium of 3294 per year.
If I surrender policy after 3 years then I will get 30% amount on my paid premiums (Minus 1’st Year Premium).
And if I continue then on maturity I will get 40 % on Sum Assure + Bonus.
Please suggest should I surrender my policy or to be continue it.

40 replies on this article “Jeevan Saral policy surrender”

  1. gautam says:

    I Have a Jeevan Saral Policy 165. which I took in Dec 2011. Yearly premium of Rd 24020 for a term of 35 yrs, Sum assured 500000.I have paid 5 full premiums but I want to now close the policy.
    Q1. What is the amount i will get if I want to close it now.
    Q2. I haven’t paid the 6th premium in dec 2016. If the policy lapses can I get it surrendered without paying anything extra?

    1. Hi gautam

      The best answer you can get only from the agent you invested through or just contact the company. The thing is your case is a bit personalised and other than company, no one can give accurate information

      Manish

  2. navee says:

    HI I am paying 36000 per annum in Jeevan saral for 25 years.I have paid till now for 5 years.

    tell me how much will i get after maturity.

    1. Hi navee

      The best answer you can get only from the agent you invested through or just contact the company. The thing is your case is a bit personalised and other than company, no one can give accurate information

      Manish

  3. Ganapati says:

    Dear Sir/Madam,
    Good Day,
    I bought Jeevan Saral policy 3 years back when I was 39 years of age and paid all 3 premiums. I would like to surrender the policy now because of financial problems. My yearly premium is Rs. 50000/- so I paid Rs. 1,50,000 in total. Could you pls. tell me how much I will get after surrendering the policy?
    Waiting for reply,
    Thanking you in advance,
    Regards,
    Ganapati

    1. Hi Ganapati

      This is very specific query which you should follow up with the concerned authority only. We wont be able to comment on that

      Manish

      1. Mah says:

        Then what exact information your trying to convey from this website???? We can contact direct agent b

  4. Arupam says:

    How do one ascertain the “Loan Amount” available on Jeevan Saral policy ? My policy commenced on 12/12/2012 and still continuing. Monthly ECS 3062/-

    1. Hi Arupam

      The best answer you can get only from the agent you invested through or just contact the company. The thing is your case is a bit personalised and other than company, no one can give accurate information

      Manish

  5. Sivanantham says:

    Hi Ashal,

    I hold Jeevan Saral policy with 3062 premium per qty with . It is completing 15 Qty in June 2015, Can you please tell me how much money I will get if I surrender the policy in Sep (after completing 3 years)

    I read that for Jeevan Saral there is special surrender value in a person surrenders the policy after 3 years. I was not able to calculate exact value because of different jargons used in the surrender value description. Can you please help me to calculate the value and let me know the formula defined in simple words to calculate the same..

    Thanks in advance for your reply.

    Sivanantham

    1. Hi Sivanantham

      The best answer you can get only from the agent you invested through or just contact the company. The thing is your case is a bit personalised and other than company, no one can give accurate information

      Manish

  6. sangamesh says:

    Hello Sir,
    (A) LIC – Jeevan Saral – Monthly Premium = 5104/- (Annually : Rs.61,248/-)

    – Policy Start : 11/09/2012
    – Policy PremiumTerm : 26 Years
    – Maturity Return Amout i.e. after 26 years = 30 Lakhs (against premium paid of 15.92 Lakhs)
    – Cover : 12.5 Lakhs Base cover + Annual Premium gets added in cover every year
    i.e. in event of death before maturity, the cover will be 12.5 lakhs + premium paid till that year
    else 30 lakhs on completion of 26 years policy term.

    (B) LIC – Whole life Plan – Monthly Premium = Rs.492/- (Annually : Rs.5904/-)

    – Policy Start : 11/09/2012
    – Policy PremiumTerm : 26 Years
    – Maturity is at the age of 80 years i.e. cover is upto 80 years of age
    (unlike jeevan saral where it is only upto 26 years from policy start date)
    – Maturity Return Amout i.e. after 80 years = 8 Lakhs (against premium paid of 1.53 Lakhs)
    – Cover : 2 Lakhs Base cover + 14,000 is added every year in the cover as scheme bonus
    i.e. in event of death before maturity, the cover will be 2 lakhs + bonus added (14K) till that year

    I wish to surrender both the policies and look for investing in decent SIP’s.
    Please guide me when i should surrender and how much i can expect??
    I am willing to pay for adivce but i need a way out to stop further damage to my hard earned money
    due to financial mis-selling by LIC advisors. Please help.

    1. I think you should check our financial planning service and apply for it – https://www.jagoinvestor.com/services/financial-planning

      1. sangamesh says:

        Dear Manish Ji, I first wish to surrender these policies. Looking forward for your kind advise for same. I am not saving enough right now to look for investments as i have big liabilities on me currently.

        1. Hi sangamesh

          I think you should make it paid up or surrender the policy.

          Manish

          1. Sangamesh says:

            ManishJi, Please help me to decide if i should surrender my jeevan saral policy after having paid premium for 3.6 years now or should i make it ‘paid-up’?? which is a better option valuewise can you please advise sir??

            1. Yes, you can go ahead and surrender it

            2. SANGAMESH says:

              thanks manish ji for your valuable time and selfless help.

  7. Parag Dadpe says:

    Hello,

    I had purchased Jeevan Saral policy in February 2009, my premium amount is Rs. 24,260 per year with Death Benefit rider of 5 lakhs, I want to surrender the policy now as I feel it is not serving the purpose of Life Insurance. I am unable to calculate the surrender value as per LIC clause of Special Surrender Value, can you please help in understanding the exact amount of surrender value that I will get. I have been paying my premiums regularly since 2009.

    Thanks

    Parag

    1. Hi Parag Dadpe

      The best answer you can get only from the agent you invested through or just contact the company. The thing is your case is a bit personalised and other than company, no one can give accurate information

      Manish

    2. rahul says:

      Hi Parag, Did you surrender policy?

  8. Jagdish says:

    Hi,

    I have paid four premiums for jevan saral and now want to cancel it.
    how much apporox amount will i get after cancellation?
    premium is 52000

    jagdish

  9. apeksha says:

    Hi, PLZZZ HELP
    I bought Jeevan saral policy in 15 dec 2011, I have paid 3 premiums and fourth is pending. my premium is 72000 per year for 25 years. My MSA is 2166000 (21 lakhs 66 thousand) and sum assured is 1500000 (15 lakhs) with double accident benefit.

    I am confused as now i feel the policy is not worth as i am not looking for any insurance plan but only as investment. I asked at LIC office they said if i surrender now i will 123000 (93000 loss) . they gave me another option of reducing sum assured and continue the policy till 25 years.

    Please suggest what to do .

    1. Satyajit says:

      Hello Apeksha

      I’m assuming you have paid 3 premiums means 72, 000 * 3 = 2,16,000. The earlier you surrender the more amount is deducted. Please ask them why 93K is being deducted.

      In case you don’t want to end up losing a huge sum you can reduce the premium. You can bring down the amount to 50% (36K per yr) or 75% (18k per yr) This will result in partial withdrawal. You can check with LIC that if you opt out for these options how much will be the withdrawal.

      Thanks & Regards
      Satyajit

  10. deepu3027 says:

    Greetings. I’m paying a premium of Rs 36,748/yr (Qly basis). I want to discontinue this policy as I have realized how stupid I was buying such a bad policy for my needs.

    Date of commencement (I was 22yrs when I took this): 19/04/2011
    Table : 165
    Term : 25 yrs (Even though the agent convinced me that it is 10yrs only)
    MSA : Rs 11,00,850

    Please suggest me the best way out of this. I can push through two more years if I have to with a minimal loss by completing 5yrs. But then, I want to know how much would be my surrender value now(when i complete 3 yrs) and surrender value when I complete 5yrs?

    Eagerly awaiting your response sir.

    Thank you..

  11. joydeep says:

    SORRY DEAR ASHAL JAHAURI……..

  12. joydeep says:

    Dear Anshal,
    If you find someone investing in LIC you throw up your tantrums !!! Why man ? As regards insurance, you seem to suggest Term Plans. Plz remember Term Plans are never loaded with Claim Concession, Auto coverage or Grace Period facility. The only mode of Term Plan is Yearly and not ECS. Plz behave rationally. I have been observing you for years and your suggestions are I swear Bumkin !!!!! I believe you are an apostle of Pvt Insurers. Plz stop all these non sense !!!!

    1. Ramesh says:

      Why not give a real value example to Prove that any person just needs a traditional policy with all those funny and complicated benefits rather than actual intention of an income protection insurance.

      Any traditional insurance, be it from LIC or the private insurers, has got similar things. It is only that in the field of insurance, because of the market share, LIC will get the maximum criticism too.

      Also, be polite by avoiding all capital letters.

      Give numbers and then talk. Because without that, it will look like you are being paid by LIC to attack Dear Ashal. :p

  13. Dhiraj Pednekar says:

    Hi Manish,

    I have a slight confusion about Jeevan Saral plicy. I had taken this policy in Jan,2010 & paid the first premium of Rs 36,030 during that time. Subsequently, i have paid the premium of 2011 & 2012 too for last 2 years. So, does that mean i have completed 3 full years now of preimum paid & i can convert this policy as a PAID-UP policy now (stop paying) ?

    Or do i have to pay another installment in Jan,2013(being the 3rd year from commencement) & then make it up as a paid up policy ?

    Please let me know your answer.

    Thanks & Regards,
    Dhiraj.

  14. Durga Prasad says:

    Thanks Ashal.

  15. Dear Yogesh, Here is the shocker for you. Out of the total 3 prem. paid by you. First year prem. ‘ll be ignored for calculation of surrender value. Now you ‘ll get 30% of the remaining 2 prem. minus any extra prem. paid for accident rider, if opted for.

    For your given case you ‘ll get special surrender value = 24000*2*30% = 48000*30% = 13200 Rs. only or even less if you had opted for accident rider.

    Thanks

    Ashal

    1. durga says:

      Dear Ashal,

      I too enrolled for this Jeevan saral policy in Jan, 2012 for an amount of 36000/ year.
      Currently I am in confusion whether to discontinue this policy or not. After looking at the surrender value after 3 years , I am really disappointed.

      I recently enrolled for a term policy from Kotak for 75 lakhs after regularly following Jago investor blog and forum.

      Please suggest me whether I can surrender this jeevan saral policy at this stage?

      Thanks
      Durga

      1. Dear Durga, If you are already have a good term cover (which is indeed there from Kotak), there is no scope for this policy in your insurance part of portfolio. Jan to Jan 2012 means around 18K prem. has been paid already. Please Stop just now as the surrender after paying 1.08L Rs. in 3Y ‘ll be very costly to you. Even a simple bank RD of 3K Rs. for the remaining period of 30 months almost, ‘ll fetch you far higher maturity amount than what you ‘ll get as surrender value. Treat this 18K as loss & a learning for yourself.

        Thanks

        Ashal

        1. durga says:

          Dear Ashal,
          Thank you for quick reply.
          I got the habit of paying yearly premiums in lumpsum, so I paid 36,000 towards the premium already. But from my understanding of reading so far, its clear that after 3 or 5 years of premium payment too I have to loose the 1st year premium incase of surrender.
          Hence I would like to stop or surrender paying this policy now itself and would consider this as learning experience.
          Let me know if I stop paying the premium that will be enough or do I need to write to LIC to surrender my policy?

          Thanks again,
          Durga

          1. Dear Durga, write a letter to LIC that you want to surrender this policy. Although you ‘ll not get any Surrender value but the policy ‘ll be marked as applied for surrender, which in later years may provide (although not guaranteed) a notional maturity value.

            Thanks

            Ashal

    2. Ajit Singh says:

      Dear Ashal,

      Please help me out. I was 26 and my father made me invest 72000/year in jeevan saral. I have paid two premium means Rs144000.After going through jaago i got to know about the LIC policies. If i surrender now i would get nothing. If after 1 more premium i would get around Rs 64800 which is further loss. I cant convince my dad how would i make up this loss by surrendering now and putting the same amount in any other place(either in FDs or MF’s).Please help me out.
      Every time i think it makes me depressed. Kindly help me with calculations.

      Ajit

      1. Dear Ajit, only you can convince your father regarding this loss. None of us or any calculator can help. It’s your battle & you w’d have to fight it out yourself.

        Thanks

        Ashal

  16. Avanti says:

    Dear Arshal,

    Thanks for reply.

    As per insurance part I will go for term plan. And for investment part I am thinking to invest in PPF and HDFC Equity for next 15 yrs.

  17. Dear Avanti, please calculate in an excel sheet, how much you can earn from PPF if you opt to invest the surrender amount & the yly prem. amount in the PPF for next 17Y or so. Regarding the insurance part, please go for pure term plans.

    Thanks

    Ashal

    1. Yogesh K says:

      Hi Ashal,

      I hold Jeevan Saral policy with 24000 premium per year with life coverage of 5 lakhs. It is completing 3 years in december, Can you please tell me how much money I will get if I surrender the policy in dec (after completing 3 years)

      I read that for Jeevan Saral there is special surrender value in a person surrenders the policy after 3 years. I was not able to calculate exact value because of different jargons used in the surrender value description. Can you please help me to calculate the value and let me know the formula defined in simple words to calculate the same..

      Thanks in advance for your reply.

      – Yogesh

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