Surrender of LIC Jeevan Saral

POSTED BY Bhavesh Furia ON February 10, 2013 2:02 pm COMMENTS (26)

Hi everybody,

I bought LIC Jeevan Saral policy on 7-Jan-2011 and my DOB is 23-Nov-1987 (25 Years).

The term is of 35 years and SA is 7.5Lacs. I pay a annually premium of Rs.36030.

After reading many articles about term vs. endowment policy, I am also planning to surrender this policy and buy a term policy ASAP.

Please let me know, whether my decision is correct or should I continue with Jeevan Saral and also buy one more term policy ?

If I surrender my policy what will be the Surrender Value that I will receive. It would be helpful if any one can give the approx figure with calculations.

According to my knowledeg & calculations I will get 30% of my 2 year premiums after paying 3 years premium, which comes around 21.6K. Is this correct ?



26 replies on this article “Surrender of LIC Jeevan Saral”

  1. ashalanshu says:

    Dear Bhavesh, please check this.

    freefincal. com/insurance-calculators/insurance-policy-surrender-value-paid-up-value-calculator/


  2. ashalanshu says:

    Dear Bhavesh, please check the paid up value from LIC customer care also either over phone or e-mail.



    1. Bhavesh Furia says:

      * Visiting LIC office personally did not help much. 🙁
      * 95% phone lines whose number is mentioned on are not working, whatever are working, nobody is picking up the phone.
      * Email sent few weeks back, but no response yet. Where should I go now ?

      It would be very helpful, if someone can share WORKING & ACTIVE contact detail of LIC helpline.

  3. Dear Harish, only LIC people & that too some seniors apart from the actuaries & underwriters do have the idea of MSA. How it’s assign is a guess work for me. In a general I can say from common sense that MSA ‘ll always remain low than the true potential to protect the profit of LIC.



  4. Dear Bhavesh, it’s ok. As you are clear in your thought process, no reason to worry. Please carry on.



  5. Bhavesh Furia says:

    Yeah, thats what my point was. “Just before/after the marriage”.

    As you know these days its so difficult to get a good life partner that you might turn from 28 to 30 while searching for the person 🙂 :p

    1. Karthik says:

      One more point to note is:
      If you get the 1 Crore cover now (at the age of 25), the premium will be less. If you purchase it at the age of 30, the premium will be more..

  6. Dear Bhavesh, in that case why wait till age 30? Why not just before or after marriage as rest of the things are bound to happen?

    After all ‘ll you wait for the rain or purchase your umbrella in advance?



  7. Bhavesh Furia says:

    Thanks Ashal for clearing my concepts

    I don’t have any plans to get married for at-least next 2 years and my dad has his own business from which he wishes to retire after 1-2 years.

    Regarding 30 years scenario, it was just my assumption that I will be married with kids till that time and my parents, spouse, child will be completely dependent on me.

  8. Dear Bhavesh, if there is no dependent on you as on date, you don’t require term cover. In case you are going to increase your family size within next few months & due to which, some one’s life ‘ll depend upon you, you should purchase term cover. So only you can answer the question yourself. Personally I’m unable to understand your point that age 30 ‘ll be your purchase time.



  9. Bhavesh Furia says:

    Dear Ashal,

    Since right now I don’t have any dependents, would it be right to buy term insurance now or should I take it after marriage or maybe when I get 30 ?

    What is the highest term period available amongst all well known policies like Aegon, Bharti etc. ?

  10. Bhavesh Furia says:

    Dear Ashal.

    I am working since last 2 and half years and I have no dependents as of now.

    I am earning 3.75LPA. I will be getting married in 2 year or so (around 2015 or maybe before that) and my dad will also retire around that time.

    I am also planning to buy a house only after 3-4 years in Bangalore or Pune. Currently I and my family have no liabilities.

    Considering above situation, I have arrived at decision that I should have a cover of at least 1CR.

    What do you suggest about it ?

    1. Dear Bhavesh, your thinking is good. Please go ahead. Please opt online term covers. Please be honest while declaring your health, family history, job profile etc. in the application form of online term cover.



  11. Dear Bhavesh, I hope the basic query is answered properly by dear FFC. Now comes the Term policy in question. Please purchase Term cover of at least 15 times of your yly income + add any open loan liabilities as on date into it.



  12. Bhavesh Furia says:

    OK. Got it. Thank you everyone for your help.

    Hope I am doing a correct thing by making this policy as paid up one.

    1. If you have claimed 80C deductions with this policy then making it paid-up is the right decision. If you have not then you can consider surrendering it by using the calculator.

      Whatever you decide, not paying anymore premiums is the the right thing to do.

      List your financial goals and invest methodically.

      1. Bhavesh Furia says:

        I have paid my 3 years premium of 36030 for SA = 7.5Lakhs & Term = 35 years.

        I decided to surrender my policy and went to LIC office to inquire about its Surrender and Paid up value.

        The executive there, told me that its surrender value is same as paid up value i.e. around 61K. I was doubtful about both value being same, so I asked her again, but she still told that its surrender value is same as paid up value. Is this possible in any case ? or maybe she did not know the meaning of paid up value ?

  13. Dear Bhavesh, had you paid your 3rd prem. which is due in jan 2013 or not?

    Please clarify.



    1. Bhavesh Furia says:

      Yes, I recently paid it..few weeks back.

      In that way, I have paid three year premiums

      1. If you have claimed 80C deductions with this policy than if you surrender before 5 years the deductions become invalid and you need to pay tax on those. Best would be to make the policy paid-up as you have paid 3 premiums

        You can use this calculator to access your options:

        1. Bhavesh Furia says:

          I am sorry but what do you mean by “making a policy paid-up”.

          After what time should I surrender it after making it paid up ?

          Will I get any final value in hand if I make it paid up.

          I want to get out of this viscous circle ASAP 🙁

          1. you stop paying premiums and the effective maturity value or paid up value will be paid at the end of the policy. Use the calculator in the above link to see which is better for you,

    2. HarishNaganna says:

      Hi Ashal,

      Greetings for the day.

      Do you have any idea about how to calculate the Maturity Sum Assured for Jeevan Saral

      1. Bhavesh Furia says:

        Dear Harish,

        The maturity SA is mentioned in the document which is given by my LIC agent.

        And if you want to know about Surrender Value then it would be better to ask in your nearby LIC office with your policy number.

        1. HarishNaganna says:

          Dear Bhavesh,

          Thanks for replying so fast, actually i want to know the calculation of Maturity Sum Assured, NOT the maturity amount

          1. Bhavesh Furia says:

            Dear Harish,

            To be honest, I really don’t know the difference between SA and Maturity SA, but in my case my agent mentioned me two figures which are
            1) SA = 7.5Lacs
            2) Amount when the policy matures (including bonus) = 1Cr. (Approx)

            For any other thing, I think Mr. Ashal is the right guy.

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