How do you calculate surrender value of an endowment policy?

Special surrender value Usually, this special surrender value is determined with the formula – (Accrued bonuses + Paid-up value) multiplied by the surrender value factor. The paid-up value is calculated as the Basic sum assured multiplied by the number of premiums payable or the number of premiums paid.

How is maturity amount calculated in LIC endowment assurance?

The maturity benefit includes the Sum Assured + Accrued simple reversionary bonus. Sum Assured + bonus accrued up to the date of death is paid as the death benefit if the death occurs during the term of the policy (Provided the policy is in full force at the time of death).

What is sum assured and surrender value?

Special surrender value = (Original sum assured * (No. of premiums paid/No. of premiums payable) + total bonus received) * surrender value factor. When one stops paying premiums after a certain period, the policy continues but with lower sum assured. This sum assured is called the paid up value.

What is the difference between surrender value and special surrender value?

The paid-up value is calculated as original sum assured multiplied by the quotient of the number of paid premiums and number of payable premiums. On discontinuing a policy, you get special surrender value, which is calculated as the sum of paid-up value and total bonus multiplied by surrender value factor.

Can I surrender my LIC endowment policy?

If there is considerable time for your policy to mature and the premiums are not too steep, you can consider surrendering it after having considered what are the cons of an endowment policy. However, you must think before you take any step, as the policy will be terminated once you surrender it.

What happens when endowment policy matures?

When the plan reaches the end of the policy term, no matter how many years, the endowment plan is said to mature. If the policyholder survives till the end of the policy term, a maturity benefit is paid out to them. If they die before the maturity of the plan, a death benefit is paid out at the time of death.

What is the maturity value of LIC endowment policy?

You can use this to calculate the LIC Endowment Assurance-14 Maturity Value….Final Addition Bonus.