25 responses

  1. bemoneyaware
    February 2, 2013

    link to download has http at end so clicking gives 404 error

    • pattu
      February 2, 2013

      Fixed. Thanks

  2. bemoneyaware
    February 2, 2013

    Pattu it’s great..I am also doing a similar post and would refer to your calculator..
    Man you saved me lot of hard work!

    • pattu
      February 2, 2013

      Thanks a lot!

  3. dilip
    March 15, 2013

    pattu sir,if you make policy paid up,whether we will get paid up value plus bonus amount whatever acquired till now?or we will get only paidup value?

    • pattu
      March 15, 2013

      Dear Dilip,
      All bonuses applicable up to date of making it paid-up will be paid along with paid-up value during date of maturity. Unfortunately if the paid-up date is far away from maturity date the money will simple be idle and not earn any interest

  4. dilip
    March 16, 2013

    Thank you sir! I have paid 5yrs premium and stopped paying premium. still 15yrs there for maturity.so it’s better to take money and invest somewhere else.

    • pattu
      March 16, 2013

      Great! Thanks Dilip. Good luck.

  5. Sangeeta
    April 17, 2013

    There is no monthly option available for premium payment mode.

    • pattu
      April 17, 2013

      Thanks for commenting. I am not sure of how surrender values of calculated if premiums are no calculated for whole years (eg. 2.5). In such cases I would enter 2. Trouble is this kind of information is not available in the public domain. Why would it be? No company wants policy holders to surrender!

      • Sangeeta
        April 17, 2013

        Thanks for your quick response. The file is really useful. If I input quarterly premiums (simply by multiplying monthly premium with 3), the SV quoted by LIC is just 3k lower than the amount arrived as per your sheet.

      • pattu
        April 17, 2013

        Thank you! This is the kind of feedback I was expecting for this calculator! May I know if you given the correct bonus amt as inputs?

  6. investradingedge
    April 25, 2013

    Hi,
    I have downloaded the calculator, but I am getting the correct SV what was told by the LIC employee. My SA is 500000, PPT is 10 years, its a whole life money back policy (Jeevan Rekha) which gives back 10% of SA every 5 years. I have paid 8 premiums. And premium is 31526. Please let me know, when will be my break even when I surrender this policy. Currect SV is 151000.

    • pattu
      April 25, 2013

      1. I am not sure about how SV is calculated in case of money-back policies. You must have got some amt after 5 yrs. Perhaps this should be deducted from the result seen in the excel file.
      2. When use the excel file did you use the correct bonus amounts?

      In your case, if I understand you write, your annual premium is 31256, policy term is 10 yr and you have paid 8 yrs.
      My advice: kindly do not surrender. Please pay the remaining premiums let the policy run to maturity.

      if you have bonus amounts and the SV obtained from LIC website, kindly send it to me. I will use it to check the calculator.

  7. Himanshu
    April 30, 2013

    I have a Reliance money multiplier plan
    Premium is Rs 50236 yearly and term is 10 years. BSA is Rs 341774.
    Company person promised me that on surrendering the policy after paying 3 premiums and on completion of 4th year i will get
    GSV (30 %) + SSV (40 % of Paid up value on Maturity) + Paid up value for 3 years.

    Is it correct .
    .

  8. TJ
    July 12, 2013

    Excellent tool, really useful. Thanks a ton..

    • pattu
      July 12, 2013

      Thank you.

  9. Animesh Chakraborty
    September 27, 2013

    I have Jeevan saral with monthly premium, your calculator sheet does not have monthly premium input option? please told how can I use your calculator for monthly premium option?

    • pattu
      September 27, 2013

      Hi Animesh,

      convert monthly premium to annual premium to get an estimate of paid up and surrender values. Note that in most cases making a policy paid-up is the simplest and best option.

  10. Kunal
    April 9, 2014

    Hello Sir,

    Thanks for the various templates shared! I have downloaded many of them, but this is the first one that I have used. I have a question – my situation is very similar to the illustration you have given here – 4.25 years completed. Now it’s not 5, but I have claimed the 80C deduction every fin year. However, I also see that my policy has been issued in Oct 2009, so it’s before 2003. So, finally if I surrender it, will the returns be taxable? Your template says no, but I am posting this comment to confirm it.

    Thanks in advance for your time and reply.

    • pattu
      April 10, 2014

      Hi Kunal, Thank you. My understanding is that you should wait until 5 years are completed before surrendering. If you surrender before 5 years, the 80C deductions become invalid and you will need pay on those in the FY year of surrender.

  11. Shiva
    April 14, 2014

    Hello Mr. Pattu,

    I am shiva and i have gone for jeevan anand policy.

    I am 23 years old as of now. Intially when i took the policy a year back, it seemed very lucrative but now it feels really difficult for me to pay the premiums

    I took this policy in the month of may 2013 and i have so far payed 59,268 in 2 installments of 29,634 each. I dont want to for surrender option because i know i would be paid peanuts for the total amount i will be paying.

    I wish to go for paid up option. I also understand that i will have to pay money for atleast 3 years to go for paid up option.

    So in 3 years i will be paying 1,77,804 ( 59268 * 3). Assuming my bonus rate to be 50, kindly let me know how much i will be getting after 21 years which is my policy term

    PS: I tried using your calculator but sorry i couldnt understand anything properly

    What do u suggest ?

    • pattu
      April 14, 2014

      If make the policy paidup the amt you will receive after 21 years will only be a little higher than the surrender value since further bonuses will stop. If you take inflation into account, you will practically get nothing.
      If you can stomach this 59K loss now and stop premiums, you will not get the addition loss of 59K x 2. So my advice is to stop your losses now. You are only 23. Invest in equity mutual funds aggressively. You will easily make up the loss.

  12. Santanu Ray
    July 29, 2014

    yes

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