Hi,
I am a regular reader of your blog and this blog is helping me to improve my financial planning and awareness. Recently I decided to surrender my ICICI Forever life pension policy as I figured out the the pension a the vesting time will be nowhere near the prmised illustration, So I have decided to get the surrender value from ICICI and the surrender value they quote is way below what I calculated. Could you check the mail send by me to ICICI and let me know if my cacluation is correct and also advise if it is wise to surrender this policy a this point of time.
Thanks,
-Sajit
My mail to ICICI below illustratinf the calculation of surrender value
I had a look at the insurance offer letter and surrender value according to the offer letter is
35% of premiums paid excluding the first premiums and any extra premiums + guarenteed additions + accrued bonus. So as per the mail received from you and Madhavan Balakrishnan (Exec director ICICI LIC Co.Ltd) about the one time celebratory bonus. I have made excel sheet to calculate the surrender value which is Rs. 81516.79. Please see that attached and let me know your explanations.
| Date | Premium | Guaranteed additions | Vested Bonus | |
| First Premium | 30-Oct-03 | 10346 | ||
| Second | 30-Oct-04 | 10346 | 8050 | |
| third | 30-Oct-05 | 10346 | 8331.75 | |
| fourth | 30-Oct-06 | 10346 | 8623.36 | |
| fifth | 30-Oct-07 | 10346 | 8925.17 | |
| sixth | 30-Oct-08 | 10346 | 7917.9 | |
| seventh | 30-Oct-09 | 10346 | 6796.2 | |
| 31-Mar-10 | 7662.76 | |||
| One time Celebratory bonus | 3483.05 | |||
| Sum of premuims excluding first year premium | 62076 | |||
| 35% of premiums excluding first premium | 21726.6 | |||
| Sum of guarenteed additions | 33930.28 | |||
| Sum of accrued bomus | 25859.91 | |||
| Surrender value | 81516.79 | |||
Thanks,
-Sajit
Dear MR Sajit Varghese Zachariah,
We refer to your email dated 1st December, 2010.
The Surrender Value is equal to 35% of all premiums – Frist year premium + Cash value of all accrued bonuses.
Hence the calculated surrender value as on 2nd December, 2010 is Rs. 38, 296.41/-.
Please contact us for further clarifications, if any.
Yours Sincerely,
Santosh Kesari
Customer Service Manager
ICICI Prudential Life Insurance Co. Ltd.Want to BUY a new policy? click here
ICICI Prudential has been recognized as India’s Most Customer Responsive Insurance Company for the 3rd time by Avaya Global Connect Awards 2010
———————————————————————————————————————————————————–
ICICI Prudential Forever Life(RP) UIN 105N001V01 Policy Number 00543102
© 2010, ICICI Prudential Life Insurance Co. Ltd.
Insurance is a subject matter of solicitation—————Original Message——————
Subject: Re: Re: Benefit Illustrations Call ID # 28575488 Date Sent: 01-December-2010 Time Sent: 09:20:00 AM Sender ID: sajit.zachariah@gmail.com Message Text: Thanks Mr. Santosh.I would like to know what would be the surrender value for my policy as of
today.Thanks for the details.
Best Regards,
-SajitOn Tue, Nov 30, 2010 at 2:30 PM, ICICI Prudential Life Insurance Co. Ltd <
lifeline@iciciprulife.com> wrote:> Dear Mr. Sajit Varghese Zachariah,
>
> We refer to your email dated 28th November, 2010.
>
> We would like to inform that the Guranteed Bonus accured for your policy
> are as follows:
>
> Date Amount
>
> 31st March, 2004 Rs. 8050/-
> 31st March, 2005 Rs. 8331.75/-
> 31st March, 2006 Rs. 8623.36/-
> 31st March, 2007 Rs. 8925.17/-
>
> Further, the Revisionary bonus accrued for your policy are as follows:
>
> Date Amount
>
> 31st March, 2008 Rs. 7917.90/-
> 31st March, 2009 Rs. 6796.20/-
> 31st March, 2010 Rs. 7662.72/-
>
> Please contact us for further clarifications, if any.
>
> Yours Sincerely,
> Santosh Kesari
> Customer Service Manager
>
> ICICI Prudential Life Insurance Co. Ltd.
>
> ICICI Prudential has been recognized as India’s Most Customer Responsive
> Insurance Company for the 3rd time by Avaya Global Connect Awards 2010
>
> ———————————————————————————————————————————————————–
> ICICI Prudential Forever Life(RP) UIN 105N001V01 Policy Number 00543102
> © 2010, ICICI Prudential Life Insurance Co. Ltd.
> Insurance is a subject matter of solicitation
>
>
> Want to BUY a new policy? click here
>
>
> —————Original Message——————
> Thanks for sending the illustrations but I want to see the actual
> guaranteed additions and bonuses accrued in my policy so far.. Please note
> that I want to see the *actual* performance of the policy and not an
> arbitrary 10% or 6% illustration. Please send that to me ASAP. If the there
> are no bonuses accrued after paying premium from 2003 , I don”t thing the
> policy will not return me anything at the vesting time. So please send me
> the details ASAP.
>
>
> Thanks
> -Sajit
>—
Best Regards,Sajit Zachariah
Attachments: CC Receipients:
—
Best Regards,
Sajit Zachariah