Category: Insurance update

Joint Life Insurance Policies: Benefits, Drawbacks

Posted on April 15, 2023April 13, 2023 by avinash

Joint Life Insurance Policies: Benefits, Drawbacks, and How to Choose the Right Coverage for You and Your Partner

Introduction:

Joint life insurance policies are a type of life insurance that provides coverage for two individuals, typically spouses or partners.

In a joint life insurance policy, both individuals are covered under a single policy, and the death benefit is paid out when one or both of the insured individuals pass away. In this article, we will explore the basics of joint life insurance policies, their benefits and drawbacks, and factors to consider when choosing the right policy for you and your partner.

Individual vs. Joint Life Insurance Policies:

Individual life insurance policies provide coverage for a single person, while joint life insurance policies provide coverage for two people. There are several differences between the two types of policies that should be considered when choosing the right coverage for you and your partner.

One key difference is the cost of the policy. Joint life insurance policies are generally more affordable than individual policies because they cover two people under a single policy.

However, it’s important to note that the death benefit is typically paid out only once, either when one or both of the insured individuals pass away.

In contrast, individual policies provide a death benefit for each individual covered under the policy.

Another difference is the flexibility of the policy. With an individual policy, each person can choose the amount of coverage they need based on their individual circumstances.

With a joint policy, the coverage amount is typically shared between the two individuals, which may not provide adequate coverage for each person’s needs.

Types of Joint Life Insurance Policies:

There are two main types of joint life insurance policies: first-to-die and second-to-die.

First-to-Die Policies: In a first-to-die policy, the death benefit is paid out when the first insured individual passes away.

This type of policy is typically used to provide financial protection for a spouse or partner, as the death benefit can help cover expenses such as a mortgage or other debts.

Second-to-Die Policies: In a second-to-die policy, the death benefit is paid out when both insured individuals pass away.

This type of policy is typically used for estate planning purposes, as the death benefit can help cover estate taxes or other expenses related to the passing of both individuals.

Benefits of Joint Life Insurance Policies:

Cost Savings: Joint life insurance policies are typically more affordable than individual policies, as the cost is shared between the two insured individuals.
Simplicity: Joint life insurance policies are generally simpler and easier to manage than multiple individual policies.
Estate Planning: Second-to-die joint life insurance policies can be useful for estate planning purposes, as the death benefit can help cover estate taxes or other expenses.
Shared Coverage: Joint life insurance policies provide coverage for both individuals under a single policy, which can be beneficial for couples who share financial responsibilities.

Drawbacks of Joint Life Insurance Policies:

Shared Coverage: While shared coverage can be beneficial, it may not provide adequate coverage for each individual’s needs.
Death Benefit: Joint life insurance policies typically pay out the death benefit only once, either when one or both of the insured individuals pass away.
Complexity: While joint life insurance policies can be simpler to manage than multiple individual policies, they may be more complex to understand and compare.

Considerations for Choosing a Joint Life Insurance Policy:

Coverage Amount: When choosing a joint life insurance policy, it’s important to consider the coverage amount and whether it will provide adequate financial protection for both individuals.
Type of Policy: First-to-die policies may be more suitable for couples who have a mortgage or other debts that would need to be covered in the event of one partner’s death, while second-to-die policies may be more suitable for couples who are planning for estate taxes or other expenses related to the passing of both partners.

Policy Features of Joint Life Insurance:

When comparing joint life insurance policies, it’s important to consider the features of each policy, such as the length of coverage, premium amounts, and any additional benefits or riders.

Age and Health: The age and health of both individuals should also be considered when choosing a joint life insurance policy.

The premiums for the policy may be higher if one or both individuals have pre-existing health conditions or are older.

Financial Goals: It’s important to consider your overall financial goals when choosing a joint life insurance policy. The policy should provide adequate coverage to protect your financial future, while also fitting within your budget and long-term financial plans.

In Conclusion:

Joint life insurance policies can be a cost-effective and simple way to provide financial protection for couples. However, it’s important to consider the differences between joint and individual policies, the types of joint policies available, and the factors to consider when choosing the right coverage for you and your partner. By carefully considering your financial goals, coverage needs, and policy options, you can choose the best joint life insurance policy to provide financial security for your loved ones.

Critical Illness Insurance Polic: Protect Yourself and Your Finances

Posted on April 13, 2023April 13, 2023 by avinash

Introduction:

No one wants to think about the possibility of being diagnosed with a critical illness, but the reality is that it can happen to anyone at any time.

The financial burden of a critical illness can be overwhelming, with medical bills, lost income, and other expenses adding up quickly.

That’s where a critical illness insurance policy can help provide financial protection and peace of mind. In this article, we’ll discuss what critical illness insurance is, the different types of policies available, and the factors to consider when choosing the right coverage for you.

What is Critical Illness Insurance?

Critical illness insurance is a type of insurance policy that provides a lump-sum payment if you are diagnosed with a critical illness that is covered by the policy. The payment can be used for any purpose, such as paying for medical bills, covering living expenses, or funding a change in lifestyle due to the illness.

Types of Critical Illness Insurance Policies:

There are two main types of critical illness insurance policies: standalone policies and riders on life insurance policies.

Standalone Policies: Standalone critical illness insurance policies are separate policies that are specifically designed to provide coverage for critical illnesses. These policies can be purchased on their own or in combination with other types of insurance policies.

Riders on Life Insurance Policies: Some life insurance policies offer critical illness riders, which provide coverage for critical illnesses in addition to the death benefit of the life insurance policy.

These riders can be more affordable than standalone policies, but they may have restrictions or limitations on the types of illnesses covered or the amount of coverage available.

Factors to Consider When Choosing a Critical Illness Insurance Policy:

When choosing a critical illness insurance policy, there are several factors to consider to ensure that you are getting the right coverage for your needs:

Covered Illnesses: Different policies may cover different types of critical illnesses, so it’s important to review the list of covered illnesses to ensure that the policy provides the coverage you need.

Benefit Amount: The benefit amount of the policy is the amount of money that will be paid out if you are diagnosed with a covered critical illness. Consider your financial needs and expenses when choosing the benefit amount.

Premiums: Premiums are the payments you make to the insurance company to maintain the policy. Consider the affordability of the premiums and how they fit into your budget when choosing a policy.

Waiting Period: The waiting period is the amount of time between the diagnosis of a covered critical illness and the payment of the benefit. Consider the waiting period when choosing a policy and ensure that it fits within your financial plan.

Policy Exclusions: It’s important to review the policy exclusions to ensure that you understand any limitations or restrictions on coverage. Some policies may not cover pre-existing conditions or certain types of illnesses.

Conclusion:

A critical illness insurance policy can provide valuable financial protection in the event of a covered critical illness. When choosing a policy, consider the types of policies available, the factors to consider when choosing the right coverage for you, and ensure that the policy provides the coverage you need.

With the right critical illness insurance policy, you can have peace of mind knowing that you and your loved ones are protected from the financial burden of a critical illness.

Self-Declaration Form

Posted on August 9, 2020August 9, 2020 by avinash

Coronavirus Self Declaration Form

A coronavirus self-declaration form is used by individuals infected with COVID-19 to report their medical status.

Whether you’re an employer or manage HR for a company, this free Coronavirus Self-Declaration Form allows members of your staff to confirm if they have coronavirus, so they can proceed to seek medical treatment and prevent further contamination in your workplace.

Employees can provide their

contact details,

describe their recent travel history,

list people they have come into contact with,

check off any symptoms they may be experiencing, and

request to work from home if applicable.

To keep your employees’ sensitive medical information as safe as possible.

With our free Coronavirus Self-Declaration Form, you’ll be able to take the proper precautions and keep you and your employees safe during this pandemic.

Self Declaration Form for LIC Policy

There are two types of age proofs in LIC ,One is Standard age proof and another is Non standard .

Self Age Declaration is Non-standard age proof.Just give an application and mention your age ,it will be consider as Age proof document for certain level of Sum Assured of Insurance Policy.

LIC New Plans: New changes in LIC OF INDIA from 1.2.2020

Posted on February 4, 2020February 4, 2020 by avinash

New changes in LIC OF INDIA from 01.02.2020

There are New changes all the LIC policies in LIC OF INDIA from 1st Feb 2020 . All previous policies have been withdrawn. If you have purchased old plans then it will not affect you. But if want to have New Insurance Plans from LIC of India then you have to buy new one.

LIC policies with updated features:

1)Settlement option on Claim and Maturity

For Death Claims:-need to confirm at the proposal stage
For Maturity:-exercise before 90days for request, available for 5,10,15 years…modes available monthly, quaterly, half yearly, yearly.

2).Loan is given at 80% of SV:

On surrender of LIC Policies you may get upto 80% of LOAN

3).GSV – 30% less charges.GSV is Guranted Surrender Value.

4).Grace period restrict to 30days from the first unpaid premium of customer.Important to note that at first 3 years risk ceases on closing of Grace period.

5).Minor life Age 8 cover start from day one earlier it starts after 2completion of 2 years of child policies.

6).Accident coverage ceases once you attain age 70 irrespective of basic coverage continue.

7).Accident coverage for minor to major allowed for policy whose PPT is 5 and more years only. If it is less than five not allowed for Accident death.

8).Term rider minimum 1 lakh Maximum -25 lakhs Including existing term rider in all policies.

9).CIR (Critical illness Rider) once claimed no rider premium will be charged there after in whole LIC policies term.

10).PWB (Premium Waiver Benefit) is allowed to minor life upto age 25 previously it was upto PPT and age of LP should not exceed 70.

11).Total 16 PLANS launch all the plans are having ACCIDENT DEATH AND DISABILITY COVERAGE except SHILA + TERM PLAN12).Some MAJOR CHANGE:

BIMA BACHAT and Single Premium 917 we can give TERM RIDER COVERAGE subject to health and financial support.
4 Type of Riders Available Like PWB, CIR, ADDB, TERM RIDER

14).Claim concession

First 3 years only upto grace period no claim concession if customer doesn’t pay during grace period and died single penny not payable to family.

After 3 years – 6 months subject to recovery of full premium
After 5 years – one full year subject to same.
During claim concession period
No rider benefit is payable

15).Suicide clause :

Within one year refund of premium @ 80% less charges
After one year – full one year.

16).Please Note Now Proposer

Use New Proposal forms
Mother name is mandate
Nominee I’d proof is mandate
Suitability form is mandate
Benefit illustration with new form.

New customer service form LIC OF INDIA

Posted on February 7, 2019February 14, 2019 by avinash

Life Insurance Corporation (LIC) of India is going start sending sms to message customer from the March 1, 2019, the policyholders will get automated SMS to update their customers regarding politics payment due, lapsation,revival ,surrender and maturity also.

One will get SMS, Like

“Dear Customer, we inform you that LIC will send Premium Due Intimations and reminders for your Policy Number xxxxxxxx by SMS only, with effect from 01.03.2019.”

If you have not received this SMS, it means your mobile number is not registered with LIC politics.

It is very easy to register your Mobile number with LIC of India,you may call to LIC agent to whom you have purchased politics.

If your agent is not in contact with you then you can go to LIC branch and submit letter to update it.

You may also do it online by visiting www.licindia.in/Customer-Services

or by calling 24×7 helpline number 022-68276827.

The corporation will send about 65 such messages, apart from reminder for premium payment, in case of a policy gets lapsed, revived or foreclosed, a policy bond is dispatched,bonus or loyalty is added, NEFT or NACH mandate is registered or rejected, maturity amount becomes due or paid and even greeting message on New year etc.

LIC CUSTOMER CARE

Earlier you had to either depend to your LIC AGENT or you have to call customer care in office hour for the sake of finding information about your LIC plan.

Now it’s a great initiative that Customer care help available for round the clock.

24×7 helpline number 022-68276827.

LIC Customer Portal:

If your tecno sevy and want to know every time regarding bonus accrued , surrender value,loan available, premium paid certificate ,to pay your premium online etc, you can enroll your LIC POLITICS in customer portal what you may find on LIC website.

3 things is necessary to enroll your policy

Your Premium amount without service tax.
Your date of birth
Your LIC POLICY number

LIC CUSTOMER ZONES:

Thare are still few services which is directly related to parent branch. Parent branch are those ,from whare you brought your politics. If you see you original LIC bond paper you can easily find LIC branch number. Through such branch number you can find address. There you must have to visit for few services like Nominee change,revival of your politics etc.

You might find uncomfortable to visit there ,as if you have changed your city etc.

Now LIC has established customer zone which is near you and you can get any kind of services there without visiting parent branch.

Deduction allowable from income for Payment of life Insurance Premium section 80c

Posted on January 23, 2019May 21, 2019 by avinash

a) life insurance premium paid in order to effect or to keep in force an insurance on the life of assessee or the life of the spouse or any child of assessee and in the case of h u f, premium paid on the life of any member thereof under an insurance policy (other than a contract for a deferred annuity), issued on or before the 31st day of March 2012 shall be eligible for deduction only to the extent of 20% of the actual capital sum assured or actual premium paid whichever is less.

b) life insurance premium paid in order to effect or to keep in force an insurance of the life of the assessee or on the life of the spouse or any child of assessee and in the case of HUL , premium paid on the life of any member thereof , under an insurance policy( other than a contract for and deferred annuity) , issued on or after the 1st day of April 2012 shall be eligible for deduction only to the extent of 10% of the actual capital sum assured aur actual premium paid whichever is less.

Where the policy, issued on or after the first day of april, 2013, is for insurance on life of any person .

Who is—

i) a person with disability aur a person with severe disability as referred to in section 80u, or

ii) suffering from disease or ailment as a specified in under section 80dd b, deduction under the section is allowed only to the extent of 15% of the actual capital sum assured or actual premium paid whichever is less.

c) contribution to deferred annuity plans in order to effect or to keep in force a contract for deferred annuity, on his own life or the life of his spouse or any child of such individual is eligible for deduction, provided such contract does not contain a provision to exercise an option by the insured to receive cash payment in lieu of the payment of annuity.

d) contribution to annuity plans lIC new Jeevan Dhara and and new Jeevan Akshay is eligible for deduction.NOTE: The aggregate amount of deduction under section 80c, 80ccc and 80ccd (1) shall not not in any case exceed 150000 rupees.

PROOF OF INCOME
The following documents can be considered as proof of income:

Salary Certificate
Personal Financial Questionnaire
Chartered Accountant’s Certificate
Income Tax Returns (ITRs) with computation of income statement of Income Tax Orders
Audited Company/ Firm Accounts including Profit & Loss Accounts.
Bank’s Statements (Pass Book)
The land revenue records in form of 7/12 extracts certificate from Tahasildar regarding crop pattern indicating crop yield, whenever source of income is shown as agriculture.
Whenever income from export is indicated in proposal form / I.T. returns/ Computation of income/ CA’s certificate, then income certificate in the form of report under 80 HHC and Form No. 10 CCAC duly completed and attested should be obtained.

Proof of Income to be submitted depends on the total rated up sum assured as shown below:

Total rated up sum assured mentioned above for the purpose of calling for proof of income will be calculated as under :-

Total rate up sum assured on the life of the proposer

Total rated up insurance on the lives of all children aged up to 25 (financed by parents)
Total rated up insurance on the life of wife (financed by husband up to a maximum of Rs. 30 lacs)/ total rated up insurance on the life of husband (proposed and financed by wife) +Total rated up credit given to sons and unmarried daughters aged more than 25 years. In the case of proposals on the lives of children aged upto 25, proof of income of the personal (father or mother) funding the insurance is to be called for.

The proof of income will depend on the total rated up sum assured calculated as above. In the case of proposals on the lives of married women on the basis of husband’s income, proof of income of the husband is to be called for. The proof of income will depend on the total rated up sum assured calculated as above. Income shown in the Income tax returns: Income Tax Returns (ITRs) show only net income.

Therefore, standard deduction if allowed can be added to the total income. If any interest is paid for housing loans and if it is claimed as a deduction against income from housing property, it can be added back to the total income. If income exempted from income tax (e.g. dividend income, export income, interest on tax- free bonds, agricultural income etc) is either mentioned in the ITRs or in the computation of income statement attached with ITRs, then separate proof of such income need not be called for.

However, if such exempted income is not mentioned it ITRs or computation of income Statement, Proof of the income should be called for.

Share of profit from Partnership firms:

Copies of partnership deed and ITRs/ audited accounts for last three years are to be called for, it is to be ensured that the partnership deed is still in force and the partners are actually receiving their share of profit.

Surrender Value Calculation of Jeevan Shanti

Posted on September 16, 2018September 24, 2018 by avinash

1. Jeevan shanti policy can be surrendered at any time after three months from the Date of issuance of policy or after expiry of the free-look period, whichever is later.
2. Surrender is allowed only under the following annuity options:

a) Immediate annuity–
 Option F: Immediate Annuity for life with return of Purchase Price.
 Option J: Joint Life Immediate Annuity for life with a provision for 100% of the annuity payable as
long as one of the Annuitant survives and return of Purchase Price on death of last survivor.

b) Deferred annuity–
 Option 1: Deferred annuity for Single life.
 Option 2: Deferred annuity for Joint life.
3. On payment of the surrender value all other benefits payable will cease.
Procedure for Determining Surrender Value:
a. Surrender During deferment period under Deferred Annuity:
SV = F3 x (F1 x Equivalent annuity amount payable for yearly mode + F2 x 110% of Purchase Price)
Where:

 F1 is Annuity Factor applicable at age lbd on the date of Vesting.
 F2 is the Risk Factor applicable for age lbd on the date of Vesting.
 F3 is the Factor applicable for outstanding deferment period in complete full years as at date of
surrender.
For Example: if the policy with deferment Period 20 years is surrendered during 20th year of policy, then outstanding period will be Zero.
 In case of Joint life policies factors F1 and F2 shall depend on the age lbd of younger annuitant.

Example:
Age at Entry (lbd): Primary Annuitant – 45 Years, Secondary Annuitant – 35 years.
Purchase Price – 10,00,000, Deferment Period – 20 years, Annuity Mode – Yearly,
Calculate Surrender Value payable during 4th
year.
 Age lbd of Younger age at Vesting = 35 + 20 = 55 years
 Annuity rate Payable p.a. for 10 lacs Purchase Price under Joint Life = 225.10 + 2.10 = 227.20
Annuity Payable Per annum = 10,00,000 x 227.20/1000 = 2,27,200
 Outstanding Deferment Period = 20 – 4 = 16 years.
 Factor F1 at Age 55 lbd = 9.4760
 Factor F2 at Age 55 lbd = 0.1306
 Factor F3 for Outstanding Deferment Period of 16 years = 23.94%
Surrender Value = F3 x (F1 x Annual Annuity Payable + F2 x 110% of Purchase Price)
= 23.94/100 x (9.4760 x 2,27,200 + 0.1306 x 11,00,000)
= 0.2394 x (21,52,947 + 1,43,660)
= 0.2394 x (22, 96,607) = 5,49,807

Surrender Value and Loan Payable during each year under Above Example:

b) Surrender after deferment period under Deferred Annuity and under Immediate Annuity:

Surrender Value =
(F1 x Equivalent annuity amount payable for yearly mode + F2 x 110% of Purchase Price) – Annuity
installments paid under the policy during the policy year of surrender up to date of surrender.
Where:
 F1 is Annuity Factor applicable for age lbd on the date of surrender.
 F2 is the Risk Factor applicable for age lbd on the date of surrender.
 In case of Joint life policies factors F1 and F2 shall depend on the age lbd of younger annuitant.
Example:
Age at Entry (lbd): Single/Primary Annuitant – 45 Years, Secondary Annuitant – 35 years.
Purchase Price – 10,00,000, Deferment Period – 20 years, Annuity Mode – Yearly,
Calculate Surrender Value after 3 years (During 4th year after Vesting):
a) Under Option F of Immediate Annuity and
b) Option 2 of Deferred Annuity
a) Under Option F of Immediate Annuity:
 Age lbd of Annuitant on the date of Surrender = 45 + 3 = 48
 Annuity Rate under option F for 10 Lacs Purchase Price Payable yearly = 63.30 + 2.10 = 65.40
 Annuity payable p.a = 10,00,000 x 65.40 /1000 = 65400
 Factor F1 for Age lbd 48 years = 10.0515
 Factor F2 for Age lbd 48 years = 0.0828
SV = (F1 x Equivalent annuity amount payable for yearly mode + F2 x 110% of Purchase Price) –
Annuity installments paid under the policy during the policy year of surrender up to date of surrender.
SV = (10.0515 x 65400 + 0.0828 x 11,00,000) – Nil ( As Annuity mode is yearly).
= 6,57,368 + 91,080 = 7,48,448

What is Grace period for LIC Premium payments?

Posted on May 28, 2018May 28, 2018 by avinash

Grace period

If you fail to pay LIC PREMIUM on time then LIC gives you days to pay Your premium without any hassle.

Grace period of one calendar month 30 days will be allowed for the payment of premium under early half yearly quarterly mode and 15 days of premium under monthly mode without changing the interest.

If premium paid after Grace period then interest from due date of premium is charged.

In case of death of life assured in grace period full death claim is payable. However the unpaid premium falling due to before next policy anniversary will be deducted claim amount payable.

If premium chart not paid expiry Grace period the policy lapses and clean under the policy is not payable in case of death after Grace period.

So agent has also to ensure the policy holders pay the premium within Grace period and policy holder should also take it note.

The above Grace period will also apply for the rider premiums and benefit also.

GST Rates (Service Tax) On LIC Policy

Posted on May 26, 2018 by avinash

Goods and Services Tax or GST has come into effect from July 1st, 2017 earlier GST on LIC Policy in the form of Service Tax .GST is a biggest tax reform in India history .It impact every one and all industries then How LIC can keep themselves apart from it. GST rate on LIC should be abolish,because LIC is paying huge dividends to Govt.

GST is also chargeable on the Interest Charged for Delayed Premium that late fees .we can say now GST will be applicable on Interest charged on delayed receipt of premium.

Rate will be applicable according to the type of premium collected. Here Types of premium means Mode of premium (yearly ,half-yearly,quarterly,monthly)

If you paid LIC premium by Bank Cheque ,but for any reasons your cheque bounced

(known as CDA ) then also GST is applicable .CDA Charges will be 18%.

There are few tax exemptions are in GST as decided by GST council

( i) Services of life insurance business provided by way of annuity under the NPS regulated by PFRDA

( ii) Services provided by IRDAI to insurers under IRDAI

(iii) Services of life insurance business provided under following schemes

Janashree Bima Yojana(JBY)
Aam Aadmi Bima Yojana (AABY
Life micro-insurance product as approved by the Insurance Regulatory and Development Authority, having maximum amount of cover of fifty thousand rupees;
Varishtha Pension Bima Yojana
Pradhan Mantri Jeevan Jyoti Bima Yojana
Pradhan Mantri Jan Dhan Yojana
Pradhan Mantri Vaya Vanadan Yojana
Any other insurance scheme of State Government as may be notified by Government of India on recommendation of GSTC

New RATE Of GST on LIC POLICIES

PLANS of LIC	Earlier service tax	New Rates w.e.f. 1.7.2017
Term & Health Products and ULIP charges	15%	18%
NB premium(including Single Premium) of Life and Pension products and First year premium of Annuity products	3.75%	4.50%
Renewal premium	1.875%	2.25%
Single premium of Annuity Products	1.50%	1.80%

Surrender of LIC Insurance policy

Posted on May 21, 2018May 21, 2018 by avinash

If you don’t want to continue LIC policy for any reason then LIC gives you an option to surrender your Policy. There are Lock in period for 3 years in Endowment Plan and 5 years for ULIP plan. LIC policy is not allowed in LOCK in period. It does not matter of policy term but it is clear that delay in surrender gives you better amount. Normally LIC agents in Mumbai are doing all this procedure for surrender of LIC policies.

Where can you surrender your LIC policy

ü LIC parent Branch: Where you have taken your policy, you may go there and do all procedure.

ü LIC Customer Zone: LIC has opened several Customer Zone to help its customer.Here one can get any service related to LIC policies irespestive of parent branch. It is compulsory that Customer has to visit by own along with ID card.You can find Customer Zone in your locality with the help of internet.

ü LIC agent: Just do a call to LIC agent,he will do all documentation of behalf of you.

Documents Require To surrender LIC Policy

Ø Original Policy Paper (Bond Paper)

Ø Surrender Form (No.5074)Surrender Value(Form No.5704)

Here and take the printout

Ø Your Bank cancelled cheque (your name should be printed on cheque)

If Your Name is not printed on cheque or you don’t have Cheque Book then

Submit bank passbook photocopy.

Ø NEFT form :Fill all bank details , so that amount will go directly to you.

Ø Aaadhar Card and PAN card self attested zerox copy

Ø One questionnaire form also should be fill in LIC office.

How to Calculate Surrender Amount?

The exact value will be conveyed to you through servicing branch or you can also collect it through SMS/LIC customer care.but you can also calculate it by own.

{(Total Premium Paid in years/total premium Payable years)X Sum Assured } + Accrued Bonus } X Surrender Factor

Suppose Mr A has take a policy of rs 30 Lac for 30 years terms. Now Having paid for 10 years , Mr A wants to surrender it.

{(10/30) X 30 lac} + Bonus } LIC surrender Factor}

Note:Once you submit the all necessary documents, then wait for 5-10 days they transfer the fund to your bank account.

If you plan to surrender your endowment policy, bear in mind all the money you have paid that you may never get back.