Surrender Jeevan Anand Policy

POSTED BY Mohit Asher ON January 16, 2013 2:20 pm COMMENTS (6)

Hi Experts,

The question related to Jeevan Anand policy have been asked several times and am in favour of not paying further premiums but just wanted to check whether I should surrender or go for paid-up plan.

I have started the policy at age of 25 and I have taken cover of 12L for 40 years and paying a premium of 14.5K half-yearly. I have already paid a premium for 3 years.

So Approx premium paid is 87K

Surrender value based on my understanding should not be more than 30K

Please advise what is the best way to exit.


6 replies on this article “Surrender Jeevan Anand Policy”

  1. Mohit Asher says:

    Thanks Free Financial Calculators.

  2. Mohit Asher says:

    Thanks a lot Free Financial Calculator and Ashal for your valuable advices.
    I need to surrender the policy some how as you know these relatives as LIC agents will never allow to do :)..

    I hope the surrender value assumed by me is correct.
    Also, do i get any advantage if I surrender in April (i.e. after March bonus declaration) as my next premium due is in May.


    1. There are two kinds of surrender values for Jeevan Anand

      (GSV) Guaranteed Surrender Value =30% of total premiums – 1st year premium

      (CSV) Cash (or special) surrender value = [Sum Assured * (Number of Premiums Paid / Total Number of Premiums Payable) + accrued Guaranteed Additions]*Surrender Value Factor.

      The surrender value factor is zero for first 3 years for a 20 year policy after 5 years this should about 0.1-0.2 or so one needs to look at LIC tables to be sure about this.

      The surrender value you get with the greater of the two (CSV, GSV)

      Bonuses are left out of the calculation

      Since your next premium is due only in May wait until you get the bonus if you wish.

      1. Hi,

        I have 5 Jeevan Anand policies taken in 2007 with term of 27 to 31 Years with total sum assured of 5,00,000/- for yearly premium of 17,121/-.

        So I have paid total of 1,19,847.00 in 7 Years. I check with LIC I will get total Surrender value = 67,583.10 /- i.e. I will get only 65% paid amount if I surrender amount right now. Let me know if calculations are correct.

        I require your help on this whether to surrender the policy or any better alternative is available. I feel I can invest same amount in other investment option.

  3. Dear Mohit, as you have paid just 3 prem. till date, it’s the best for you that you surrender the policy now. Invest the surrender amount as well as prem. amount now onwards into Eq. MFs.



  4. Surrendering would be the best move,. Take the money and invest in investments that produce better returns,

    if you make the policy paid up the paid up value will get very small interest and you will get it after 37 years!

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