LIC Jeevan Labh 836 Surrender Value Calculator

LIC Jeevan Labh Surrender Value Calculator- An Overview

Before discussing the LIC Jeevan Labh Surrender Value Calculator, let’s briefly understand what surrender value exactly is.

The surrender value represents the amount of money a policyholder is entitled to receive from the insurance company if they choose to terminate or surrender their LIC Jeevan Labh Policy before its maturity date. The surrender value is usually a portion of the premiums the policyholder pays minus any applicable charges or deductions. 

**LIC Jeevan Labh 836 acquires surrender value upon completing three policy years.

LIC of India offers policyholders an online tool called the "LIC Jeevan Labh Surrender Value Calculator." This tool is designed to provide policyholders with crucial information about the surrender value of their life insurance policies. In this comprehensive overview, we will explore how the LIC Jeevan Labh 836 Surrender Value Calculator works and why it is essential for policyholders.

How is the LIC Jeevan Labh Surrender Value Calculator Beneficial?

The LIC Surrender Value Calculator offers the following benefits:

• Informed Decision-Making: It empowers policyholders to decide whether to surrender their policies or continue with them. By knowing the surrender value, policyholders can assess whether it aligns with their financial goals and needs.

• Financial Planning: The LIC Jeevan Labh 836 Surrender Value Calculator helps policyholders incorporate the surrender value into their overall financial planning, especially if they consider reinvesting the funds or purchasing a new insurance policy.

• Transparency: LIC Jeevan Labh Surrender Value Calculator promotes transparency by providing policyholders with a clear estimate of the surrender value, helping them understand the financial implications of their decision.

• Tax Considerations: Policyholders can use the surrender value calculation to assess any tax implications of surrendering their policies.

• Policy Comparison: If policyholders are considering surrendering one policy to purchase another, the LIC Jeevan Labh 836 Surrender Value Calculator allows them to compare surrender values to make an informed choice.

Types of Surrender Value with LIC Jeevan Labh 836

Policyholders are entitled to get two types of surrender values if they surrender their policy before maturity.

• Guaranteed Surrender Value - The guaranteed surrender value is calculated as the total premium amount paid until policy surrender multiplied by the guaranteed surrender value factor (as applicable for total premiums paid). 

• Special Surrender Value - The special surrender value is calculated as the special surrender value factor multiplied by the sum of the paid-up sum assured and vested bonuses. LIC periodically declares the special surrender value factor, which can be assessed only at the time of surrender. 

In addition to the above two types, bonuses acquire a surrender value. The surrender value concerning simple reversionary bonuses is calculated as - vested bonuses multiplied by the surrender value factor (as applicable under vested bonuses). 

How Does LIC Jeevan Labh 836 Surrender Value Calculator Works?

The LIC Surrender Value Calculator is a useful tool that helps policyholders estimate the surrender value of their LIC Jeevan Labh Policy. To understand how it works, let's break down the steps involved in using this calculator:

• Access the Calculator: First, visit the official LIC website, where you can find the Surrender Value Calculator. 

• Enter Policy Details: You will need to provide specific details about your LIC insurance policy. These details typically include

  • Policy Number

  • Policy Type

  • Policy Commencement Date

• Premium Information: Next, you will need to provide details related to the premiums you have paid:

  • Premium Payment Term

  • Total Premiums Paid

  • Frequency of Premium Payments

• Additional Riders (if applicable): If your LIC policy includes any additional riders or coverage options, provide details about these riders. Riders can impact the surrender value calculation.

• Calculate: Once you have entered all the required information, click the "Calculate" or "Submit" button on the calculator. The tool will process the data you provided to estimate the surrender value of your LIC policy.

• View Results: After processing, the calculator will display the estimated surrender value. It may provide both the guaranteed surrender value (minimum amount guaranteed by LIC) and the special surrender value (which can be higher and depends on various factors).

Remember that surrendering a policy prematurely may have financial consequences, and you can also renew your LIC policy to avoid them.

Illustrations To Understand LIC Jeevan Labh 836 Surrender Value Calculator Calculation

To clarify the usage of the LIC Surrender Value Calculator, let's look at a sample profile and calculate the surrender value. For this illustration, we are considering Ray, who bought LIC's Jeevan Labh policy for a cover of Rs.10 Lakhs for a policy term of 21 years. His annual premium came out to be approximately Rs.48,000.

Let’s assume the bonus rate to be Rs.50 per thousand sum assured. 

Please note that all the factors have been assumed for a sample profile and should not be construed as definitive.

Ray has paid all due premiums for 6 years, after which he decided to surrender the policy. The guaranteed surrender value he is entitled to at this point will be calculated as follows. 

• Total Premium Paid is (6 x 48,000), which equals Rs.2,88,000. 

• The surrender value Factor for total premiums paid for 6 policy years is 50% (as in Table 1).

Therefore, the surrender value of premiums comes out to be (Rs.2,88,000 x 50%), which equals Rs.1,44,000.

• The bonus amount receivable for 6 years at the above-mentioned rate is ((50 x 10,00,000/1,000) x 6), which equals Rs.3,00,000. 

• The surrender value Factor for bonuses received for 6 policy years is 17.03% (as in Table 2).

Therefore, the surrender value of bonuses comes out to be (Rs.3,00,000 x 17.03%) which equals Rs.51,090. 

Finally, Ray receives Rs.1,44,000 and Rs.51,090, which comes to Rs.1,95,000. This final amount is the guaranteed surrender value payable by LIC to Ray.

Summing Up

LIC Jeevan Labh Surrender Value Calculator is a valuable tool that empowers policyholders to make informed financial decisions regarding their insurance policies. Estimating guaranteed and special surrender values helps policyholders plan their financial future effectively.

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