Jeevan Saral policy surrender after 3years premium payment

POSTED BY Saroj Sahu ON December 20, 2012 7:29 pm COMMENTS (12)

Hello Sir,

I am having 2 Jeevan saral policy on me (18000 pa) and my spouse’s name (9000 pa) which started on 21/12/2009. So I paid 1st year premium on 21/12/2009, 2nd on 21/12/2010 and 3rd one on 21/12/2011. After 3 year I got to know that this is not good for investment. How much money I will get if surrender this policy now.

Please also tell me whether I will get 80% or 30% money excluding 1st year Premium.

Regards,
Saroj Sahu

12 replies on this article “Jeevan Saral policy surrender after 3years premium payment”

  1. 30% of all premiums paid – 1st year’s premium = 7200
    is the guaranteed surrender value

    There is a special surrender value =

    80% of SA more than 3 less than 4 Y
    90% of SA more than 4 less than 5 Y
    100% of SA more than 5 Y

    If special surrender value is greater than guaranteed surrender value
    you will get the special surrender value (whichever is greater).
    Read the policy document

    Should you wait for 5Y? 60000 and you get 100% of SA
    instead now you have invested 36000 and you will get 80% of SA
    I think it is easy enough to see which is the better deal

  2. Jagdish Gahlot says:

    Because those guys are saying as you have already invested 36000 so far and getting only 7200 so far so wait for 5 years and you will get better returns as compare to today. but I really do not believe on LIC now.

  3. Jagdish Gahlot says:

    Thanks for quick reply, will I get additional benefit if I surrender after completion 5 years, as oppose to now? And if yes then what it would be?

  4. Why wait for 5 years? Since you have paid the 3 premiums surrender the policy and invest elsewhere.

  5. Jagdish Gahlot says:

    I am too having this crap policy and being an educated person got trapped in this kind of policy. Now, I really understood how LIC has grown up such a large insurance company in India.

    I called those LIC customer care guys, but they told me that you will only get 7200Rs as surrender value (I paid 12000 PA since 2009-DEC annually which means 3 premiums so far). I am bit confused should I continue this policy for 5 years and then surrender or stop paying my premium from immediate effect? Can someone please answer?

  6. Biswa Singh says:

    Never heard of it. Checked internet and got a link on special surrender value. There are other links but still they are not good at explaining it. I simply dont believe about special surrender value. Please check with the LIC. In my case i checked with LIC and i dont think i am going to get any special surrender value.

    http://www.moneylife.in/article/life-insurance-surrendering-policy-think-again/24134.html

  7. Saroj Sahu says:

    Hi Biswa,

    So what about special surrender value. which is 80%. Is there any hidden condition on this.

    most people are unaware of this. Can you please explain on this?

    Regards,
    Saroj Sahu

  8. Saroj Sahu says:

    Hi Vikas,

    Agreed with Biswa. Please don’t invest in LIC or any other insurance policy for investment purpose. Only term insurance is required. Please leave this and invest in PPF, NSC or Bank FD based on your requirement. If you want to invest in MF, please start SIP. But this time make sure you are investing in right place after all this is our hard earned money.

    I have seen all LIC agents are cheats till date never seen a genuine person who suggested me good policy. They just care about their commission nothing else. Most of these agents known to the person who is taking the policy. They will try to convince you about the policy and I have seen LIC agents are always showing the chart in wrong way and that chart is no where when you are signing the policy.

    One more thing suppose a person earning 50000 rs pm investing 2500 pm in LIC jeevan saral kind of policy the insurance amount is 625000 rs which is very less if you have family (Dependants like parent and children with you).

    In that case it is better to take a term insurance and place the money some where in PPF or NSC or Bank FD. At least you don’t have to run for your hard earned money during maturity.

    Regards,
    Saroj Sahu

  9. Biswa Singh says:

    Dear Vikas,
    The best benifit you have got is that you understood that the policy is really bad after giving your first premimum. So dont invest in that at all. You will not be able to surrender this policy as the lock in period is 3 years. If you continue till 5 years and then surrender then also you wil get 30% excluding first year premimum which will be much lesser than the money your invest in 5 years. So anyways you are going to lose the money but good thing is that instead of gettign trapped into a bad investment and repenting you come out of it immediately.

    If you dont pay further premimum then your policy will become automatically paid up and you will get the amount along with any bonus and benifit after maturity.

  10. Vikas Ratnawat says:

    Hi Saroj,

    I am also having the same policy. I already paid my first premium ( INR 31534 ). Now i am also planning to surrender this policy. Please let me know can i do it or not???

    If you think that i have to continue with this policy for atleast 5 years or more… Than please suggest me what all benefits i will get after 5 years or after that…

  11. Biswa Singh says:

    You will get 30% money excluding the 1st year premimum. For the exact amount check with the LIC customer care.

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