Paid up value of LIC 75-20 Policy

POSTED BY Shashi Kant ON December 10, 2013 10:36 am COMMENTS (5)

Dear sir

My friend has taken a LIC policy in 10-2000 Insured for Rs 500000 Paying yearly installment for Rs 33608 under 75-20 table term. He has stopped paying after 7 installments. Now Agent says take surrender value of Rs 136972 and put it in LIC table Bima Bachat for 8 years or in Bima Nivesh table 171-5. When I say that leave it as it is You take what ever LIC will pay you in 2020. But we don’t know what LIC will give him in 2020 when Policy is completed. Please help my friend.

Shashi Kant

5 replies on this article “Paid up value of LIC 75-20 Policy”

  1. swapnil.kendhe100 says:

    Dear Shashi,

    Survival benefit already paid is not deducted while calculation of paid up value.

    Paid up value=(no. of years prm. paid/policy term*Sum assured)+ Accumulated Bonus.
    Maturity value = Paid up value-survival benefit already paid.

    2,20,000 amt that he will get at maturity date will be
    Paid up value- 1 lac survival benefit already paid.
    Ur friend must have got 1,00,000 Rs survival benefit under this policy.

    This is LIC policy. You do not earn interest on accumulated bonus or paid up amount.
    The calculations are correct.


  2. Shashi Kant says:

    Dear Swapnil
    Thanks for the ans As u Say
    o Paid up value for this policy is close to 3,20,000.
    o In 2020 he should get close to Rs. 2,20,000.
    Please check this amount Rs. 2,20,000. I think it should more than Paid up value
    Shashi Kant

  3. ashalanshu says:

    Dear Shashi, please listen to dear Swapnil carefully. As the remaining time frame is very less now, it’s in your friend’s interest to receive the paid up value at the end of the term in nextg 7Y.



    1. Shashi Kant says:

      Dear Ashal
      Thanks I am following the advise and have directed not to take surrender value at all
      Wait and take money in 2020
      Shashi Kant

  4. swapnil.kendhe100 says:

    Dear Shashi,

    Don’t surrender this policy.
    Since 7 years premium have been paid for 20 years term policy, surrender value he will receive is just 37.54% of the paid up value – survival benefit already paid.

    Paid up value for this policy is close to 3,20,000. This risk-cover is available for your friend in case he doesn’t surrender this policy.

    In 2020 he should get close to Rs. 2,20,000.

    Your friend must have received survival benefit of 1 lac under this policy.
    Therefor if he surrender this policy then I don’t think he should get Rs 136972 as surrender value. Please check surrender value again.

    Leave this policy paid up.
    And please don’t go for either Bima Bachat or Bima Nivesh.


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