This calculator allows you to determine:

1. Paid-up value

2. Guaranteed Surrender value

3. Special Surrender value

of any non-ULIP insurance policy. The numbers should be exact for LIC policies since it uses their surrender value factors. This can be used as a crude estimate for other insurers provided a lower average bonus rate is used.

The above numbers are calculated with (a) no bonus, (b) bonus rates for each year of policy (up to 20 years) if known or (c) with an average bonus rate.

It tells if your surrender value is taxable or not.

It allows you to compare paid-up and surrender options. it has some useful notes on bonus rates and some info on when to do what (along the lines of the blog post). Relevant interesting links are also included.

**Download the Insurance Policy Surrender Value and Paid-up Value Calculator**

**Also Read:**

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Your thoughts are vital to the health of this blog and are the driving force behind the analysis and calculators that you see here. We welcome criticism andÂ differing opinions. I will do my very best to respond to all comments asap. Please do not include hyperlinks or email ids in the comment body. Such comments will be moderated and I reserve the right to delete the entire comment or remove the links before approving them.

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

pattuFixed. Thanks

bemoneyawarePattu it's great..I am also doing a similar post and would refer to your calculator..

Man you saved me lot of hard work!

pattuThanks a lot!

dilippattu 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?

pattuDear 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

dilipThank 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.

pattuGreat! Thanks Dilip. Good luck.

SangeetaThere is no monthly option available for premium payment mode.

pattuThanks 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!

SangeetaThanks 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.

pattuThank 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?

investradingedgeHi,

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.

pattu1. 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.

PeetaI have taken Jeevan Rekha (Money back) plan during 2005 ( 10 years term) and my plan premium ends during 2015 march, after paying full premiums my agent told me that I will only get the money when I am 80 years.( Agent explained me endowment scheme and gave this whole life plan, I was misguided )

As I am not married ( Age 42yrs) and my nominee is my mother (67 years) I need experts advise on How to get the sum assured amount now rather than waiting for life long.

HimanshuI 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 .

.

pattuThats sounds like a little too much. In traditional policies SSV is all you get. I don't remember the exact formula now (I am out of town currently) but it is there in the excel file.

If you are considering stopping premium payment. Make it paid-up instead of surrendering. In this article

http://freefincal.wordpress.com/2013/04/26/omg-just-realized-my-insurance-policies-are-worthless-what-do-i-do/

I have listed the advantages.

TJExcellent tool, really useful. Thanks a ton..

pattuThank you.

Animesh ChakrabortyI 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?

pattuPost authorHi 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.

KunalHello 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.

pattuPost authorHi 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.

ShivaHello 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 ?

pattuPost authorIf 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.

Santanu Rayyes

Girishi have a Jeevan Mitra Double Cover Policy started in 1999 (20yr term) my annual premium is 12893. If i surrender it now what will be the amount i can get, i have paid premium till 2014 and have to pay for 2015 yet

Rgds

freefincalPost authorYou can get a rough idea with this sheet or better still get this info from LIC. You can even sms for it.

HimanshuPattu sir I am one of those idiot who took Jeevan Anand in Feb 2005(blame it on the investment rush for tax saving ) for a sum assured for Rs 2Lakh with annual premium of Rs 10263. A very routine question for you - what do I need to do if I make it paid up ? Do I simply stop premium payment ? Till now I can see the vested bonus as 93200 on my LIC online site

As I have paid for quite some time , will I eligible for any preferential treatment , say loyalty bonus etc if I go for surrender now ?

freefincalPost authorLoyalty bonuses are out of the question for surrendering or paid-up. You can simply make it paid-up that is stop premiums and invest elsewhere productively.

Pradeep Kumar P. I.Dear Dr. Pattu, Could you please help me to calculate the Special Surrender Value of Jeevan Saral After 5 years? I have invested in this product since 2011 (Premium 140000/year for 35 years). Now I want to exit after paying the 5th year premium . I hope this is the best I could do.

freefincalPost authorPlease check with LIC. There is an SMS services for this, if I am not wrong.

Rahul DahaleThanks a lot

Gajanan Agarmorethanks

RAMSIR

I HAVE BROUGHT JIVAN SHREE IN MAY 2011 WITH 800000/ SUM ASSURED FOR 10YEAR TERM AND NOW COMPLETED 3 YEAR WITH QUARTERLY PREMIUM 14760/,DUE FINANCIAL PROBLEM I WANT TO SURRENDER THIS,CAN YOU TELL ME SURRENDER VALLUE?

freefincalPost authorPlease contact LIC branch for this information

muditSir,

I have a jeevan Saral Policy of SA 1125000 , Term - 10 yrs , premium -54045 . I have paid 4 premiums till now. Can you tell me if i make the policy paid up how much would I receive at the end of the term.

Also

I have a jeevan AnandPolicy of SA 1000000 , Term - 23 yrs , premium -46175. I have paid 6 premiums till now. Can you tell me if i make the policy paid up how much would I receive at the end of the term.

Sorry, I was not able to understand from your calculator, hence I aksed đź™‚

Anil RajaniHI. I have total 21 policies; all with avg sum assured of about 2 lac. Premium payment started from year 2010 (age 23) (annual premium of all policies about 115000); first policy is for 27 years (till age 50), second for 28 years.....so on 21st policy for 47 years (age 70)....

Agent had sold me this policy saying that life cover continues till age 99...

I have paid premium for 5 years...what do you advice me???

Using your excel, it seems I should make all policies as paid up.

freefincalPost authorI am sorry. I cannot provide personal financial advise. Please consult a fee-only planner listed on the right side of my site.

Sachin S DI have paid 14 premiums quarterly of amount 1727/- each of Jeevan anand policy, of which 2Lacs is the sum assured for a term of 30years.

I'm thinking of surrendering the policy what''ll be the net amount I'll get in hand after all the deductions.

And will I be availing any bonuses or interest along with premium amount.

neelakanthpatilHello sir,

I am not ae to download the calculator, I am getting access denied error.

Can you please check.

freefincalPost authorThank you. I have fixed the link. You can download again.

Ankit SinghalI am having a LIC policy Jeevan Saral of 25 years tenure and paid 5 years of premium. Now I have to pay 6th year premium but found that my agent has cheated me and provided me wrong information about this policy. On surrendering this policy now I am getting around 75% of what I have invested with no interest. I have read about paid up, if I make my policy paid up (by not paying any more premiums) and then surrender it after 5 more years (i.e. policy term 10 years), will I get 100% of premium paid, will I also get loyalty bonus declared by LIC for 10 years or not

Saurabh SharmaI have paid 9 years premium for LIC jeevan anand and Jeevan Mitra, pls suggest what should I do? Should I Surrender or make it paid up. What is more beneficial?