When I wrote post related to LIC’s recent bonus declaration, I flooded with lot of quarries related to Jeevan Saral plan. Why so much confusion about this plan? Is it due to few new features of this plan or exaggerated returns shown by agents? I think both. So let us understand what this plan is and how you can calculate your returns.

This plan is different to other plans of LIC in case of accumulation what LIC provides, sum assured calculation and about surrender. Also I think this is highest selling plan in LIC after Jeevan Anand. I am not going in detail about plan feature but will point out the highlights.

- In this plan you can choose your premium amount which is not possible with other plans. Minimum monthly contribution in this plan is Rs.250.
- Sum Assured will be 250 times of your monthly premium payment. Hence suppose your monthly contribution is Rs.1,000 then sum assured will be Rs.2,50,000. You may call this benefit as “
**death benefit sum assured**” as this benefit is only meant for deaths. Hence don’t misunderstand that Sum Assured is the amount you get after maturity (which is the case with other plans). Hence I will call it as**Death Benefit SA**or**DBS**. So this option is bit advantages for age old buyers as irrespective of your age this DBS is fixed on your premium payment but not on your age and term you selected. This is not the case with other plans of LIC. So two persons paying same premium but age different is around 30 yrs then too they will get the same sum assured benefit under this plan. - In this plan if death occurs during the policy period then your nominee will receive this Death Benefit SA+Return of premiums paid (but excluding 1st year premium)+LA till that period.
- Now the biggest confusion arises is, what you will receive after the maturity. Usually in all LIC policies you will receive Sum Assured+Accrued Bonus+Final Additional Bonus if any. But in this plan depending on your age and term of the policy your sum assured which is also called as
**Maturity Sum Assured**will change. So during the period of taking this policy you will come to know what is your Maturity Sum Assured you will receive at the end of policy. This is fixed and will not change during the policy term. Will show you how to calculate it.

In this plan their are two types of premiums. One is called **Basic Premium** and another is called **Net Premium**. Basic premium is the base premium without adding any cost, but Net Premium is the premium which you actually pay to LIC and includes premium mode rebate (rebate of 2% for yearly and 1% for half yearly payment)+charges for providing you the death benefit SA (@1% DBS). Below table will give you the clear picture about this.

Note-Death Benefit SA charges are arrived as below-

Yearly premium of Rs.3,000 is divided into 12 and then multiplied by 250 times this will be (3,000/12)*250=62,500. This is the DAB and charges for this will be @1 hence Rs.62.

Now notice from above table that basic premium is nothing but base premium but net premium will add rebate and costs of this plan (which includes mode rebate and DAB charges @1%).

If it is so confusing to you then the simple formula to come to net premium will be multiply your basic premium by the factor **1.00083** this will result into net premium which you need to pay to LIC.

**Now what you will get after maturity?**

In this plan you will receive Maturity Sum Assured which is fixed and known to you in advance during the start of the policy once your age and term you chose. With this Maturity Sum Assured LIC will also provide you Loyalty Additions. This Loyalty Addition will be declared annually and currently LIC declared Loyalty Addition (LA) for 10 yrs and 11 yrs of policies only and which are Rs.250 and Rs.300 respectively. Based on this declaration we may presume the returns from this policy which hover around 6-7%. But for 10 yrs policy it is just around 3-4%.

**How to calculate Maturity Sum Assured yourself?**

LIC provided Basic Maturity Sum Assured list for the premium of Rs.100 per month for all ages. So just you need to select your age and policy term then multiply that to your **Basic Premium**. I am working on this chart and soon will upload the whole Basic Maturity Sum Assured Chart.

- Surrender Value-Their are three types of surrender values under this plan. To avail these option policy need to complete atleast 3 years.

a) Guaranteed Surrender Value-In this you will receive 30% of total premiums paid excluding 1st year premium, all extra premiums and accident benefit/term rider premiums.

b) Special Surrender Value-It will be of 1+2 options given below.

1) 80% of MSA will be paid if less than 4 years premium paid, 90% of MSA if between 4 to less than 5 years of premium paid and 100% of MSA if premiums are paid for 5 years or more.

2) Loyalty Addition till that period.

c) Can be made anytime after completion of 3 years or more from the start of the policy provided full premiums are paid.

So surrender will be bit easier once policy completes 5 yrs or more which is not the case with other LIC plans.

Hope this post will make easier in understanding this plan.

** **

s ramanasir i have jeevan saral polacy 165-15 for sa 62500 term 15 years i have already paid 14 years would it be better to surrender right now or wait till maturity

BasuNiveshDear Ramana,

As the policy already completed more than 10 years, better to close now itself.

Aj UHello sir, we had taken a jeevan saral policy for 15 years with an annual premium. In the portal, The death sum assured is showing a number however the maturity sum assured is showing 0.

Please advise if this is any typo or any action that needs to be taken.

BasuNiveshDear Aj,

Rather than the portal, it is always good to look at the policy bond. Your policy bond is the legal contract.

JITENDRA JADHAVDEAR Basavaraj, SIR

I WAS TAKING LIC JEEVAN SARAL POLICY MARCH 2009 MY DATE OF BIRTH 21.04.1980 HALF YEARLY PREMIUM 4549 TERMS 15 YEARS WHEN I WAS TAKEN POLICY MY AGE IS 29 YEARS SO PLEASE TELL ME HOW MUCH AMOUNT I WILL GET IN MATURITY PLEASE TELL US

BasuNiveshDear Jitendra,

Hard for me to tell you the exact amount. Better you visit the nearest branch.

VeeraDear Basavaraj,

This is just a thank you message. I had wanted to surrender my Jeevan saral policy when it was close to 9 years, which would have resulted in a loss. Based on your suggestion on various posts, I waited for 10 years completion. I surrendered the policy last month and received the amount today. I walk away with 1.6 lacs profit. Though it’s not a handsome return, I’m happy that I’m not at loss.

Your website has been very helpful in making this decision. Thank you wholeheartedly for the good work that you do. God bless!

BasuNiveshDear Veera,

Great to know and thanks for your kind words 🙂

RohitDear Sir,

I took Jeevan Saral in Dec 2011 for Rs 121000 annual premium.

Till Dec 21 I paid 11 installments regularly.

Is it advisable to close this policy now.

What will be the amount, I will be getting now?

Thanks n Regards,

Rohit

BasuNiveshDear Rohit,

As the policy completed more than 10 years, it is better to close. Regarding the values, be in touch with LIC branch.

MuraliHi Rohit,

I am a same policy holder as well, just completed 10 years on Dec’21 (48040 annually, Total 4,80,040 for 10 years). when I checked in Feb’22, LIC branch manager told me I would get (4,21,000 instead of total paid 4,80,040). Worried very much with their answer.

Please confirm how much are you getting post checking with LIC as per advice from Mr. Basu sir… Thanks!

Bharat AgarwalLIC Jeevan Saral Plan death sum.assured 150000 premium 72000 yearly started Sept 2013 and insurance paid till March 2021 can you help to find surrender value now and also LIC office showing surrender value lesser than premium paid I read that after 5 years you get special surrender value how come less can you advise what would be the surrender value

Basavaraj TonagattiDear Bharat,

Approach the branch.

D.PARTHIBANThank you sir,

I read all your comments,

Myself & my wife have taken this policy for Rs.20lakhs each, for 20yrs, no one gave such clear details of this policy till date properly, but after reading your comments, Now we are clarified.

Thanks,

D.Parthiban.

Coimbatore.

Basavaraj TonagattiDear Pathiban,

My pleasure 🙂

K Santhosh KumarHi Team,

I have taken the policy of Jeevan Saral 165, Request to know how much amount I will get the total amount at the time of 25 years (Maturity time). I have no idea of receiving the total amount. Can you please share the details how much i get the amount?

Installed premium Policy number 1 – 9804 Rupees

Sum assured : 2,00,000

Premium Due From 28/03/2021

Maturity Sum Assured : 2,90,088

Policy Term: 25 Yrs

Installed premium Policy number 2 – 9804 Rupees

Sum assured : 2,00,000

Premium Due From 28/03/2021

Maturity Sum Assured : 2,90,088

Policy Term: 25 Yrs

Questions :

1 How much amount I get if I surrender after 10 years? ( once complete 10 years immediately)

2. Was it interlink with the stock market?

3 After 20 years if we surrender the policies how much I will receive the assuming amount?

4 Most of the suggestions given by you to surrender the policy after 10 years, May I know the reason?

5. Was I get the highlighted amount? Below mentioned

Regards,

Santhosh

Basavaraj TonagattiDear Santhosh,

Approach the branch for amount you get.

purnimaHello sir,

I have invested in jeevan saral policy in the name of my daughter , who was a minor then, with an intention to get it assigned to me later. But after taking the policy i was informed that until the child attains majority it cannot be assigned. But later i read articles on the policy. Now i am unsure of what to do? Surrender ? Take a loan? Assignment? Or continue till completion of 10 yrs? Can u please guide? the details are as follows:

DOC : sep’2013 (the child was 12 yrs of age)

Premium per annum paid half yearly : Rs.52272

DSA : Rs.11,00,000

MSA : Rs.13,13,1800

PPT : 21 yrs

Premium paid for :14 half years ie upto 2019

Thanks in advance.

Basavaraj TonagattiDear Purnima,

Complete 10 years, then surrender it.

Bhawna RanaHello sir,

I have a lic Jeevan saral policy with following details-

1. Premium – 24020 yrly

2. Sum assured – 500000

3. DOC – 12.12.2011

4. Age at Comm. – 27

Sir, my policy is in force till date. Plz suggest that should I surrender it now or wait till next year?

Thanking u in anticipation.

Regards

Basavaraj TonagattiDear Bhawna,

Surrender it once it completes 10 years.

RashmiMy jeevan saral.policy was taken in Nov 2011.. quarterly premium is 3062 and Msa is 250000.Can I surrender my policy in Nov 2021 as it will complete my 10 year of premium paying?? Or I have to wait for one more year. Ie in 2022 to avail loyalty additions?

Basavaraj TonagattiDear Rashmi,

Once you pay the 10 year premium, then you can surrender.

Rakesh Kumar RawatI took LIC jeevan saral plan -165 policy with monthly premium of Rs 2024/- in 14th August 2010 with 21 years period and that time my age was 39 .06 months years. The maturity sum assured is Rs 527860/- and date of maturity is on 14/08/2031. It is learned that the loyalty supplement for this policy is applicable only after the 10 years . When contacted with LIC agent he informed me that I have to pay regular premium till August 2021 to complete 10 years to enable me to get the loyalty supplement.

As I would like to discontinue the said policy after completion of 10 years , what will be the Full & Final Maturity Value after 10 years.

Your valuable advice will be highly appreciated.

Basavaraj TonagattiDear Rakesh,

Yes, LA is applicable only for the policies which complete 10+ years. Hence, you have no option but to continue. Regarding the exact values, better be in touch with the branch (NOT WITH AN AGENT).

G KISHORE KUMARSir My Name is Kishore Kumar

I have 2 Jeevan saral policy

1. policy for 10,00,000 SA taken on 15.12.2011 paying terms 20 years – I am paying 48,000 PA

2. Policy for 12,50,000 SA taken on 26.07.2013 Paying terms 16 years – I am paying 60,000 PA

if I surrender my policy after 10 years of payment what will my returns

Basavaraj TonagattiDear Kishore,

Check with branch.

RashmiThank you sir . Just need a suggestion shall I continue with my policy term ie. 21 year. Will it

b beneficial?? or shall I surrender once complete 10 year.

Basavaraj TonagattiDear Rashmi,

Better to surrender once it completes 10 years.

RashmiHi, I have a jeevan saral policy with msa 250000,and quarterly premium of 3062 for 21 year. If I wish to surrender the policy after 10 yrs will I get the loyalty addition?? Also would like to know till what percentage to total premium paid can be be withdrawn if I want to partially surrender?

Basavaraj TonagattiDear Rashmi,

Yes, if you surrender after 10 years, then you get the LA based on 10 years. Better you surrender than partial withdrawal.

Sneh GandhiDear Sir, Really appreciate your effort in writing this article and educating people! I have started a home loan at 7% rate and my husband has 4 Jeevan Saral Policies Plan No. 165. We wish to surrender, to repay our home loan principal amount, but not sure if we should wait or surrender now? Details

of the 4 policies:

Policy 1:

started in yr 2011,

Maturity SA: 2,79,630

Prem paying term and Policy term: 20 yrs

Premium amt: 6065 ; Payment Mode: half yearly

Policy 2 and Policy 3 have exact same features and was started in year 2012.

Policy 4 :

Started in 2013

Maturity SA: 8,43, 856

Prem paying term and Policy term: 35 yrs !!

Premium amount: Rs. 19216 yearly

I know the surrender values against each policy but should I wait for every policy to complete 10 years or give up right away and why- pls share reason. Thank You. God Bless You!

Basavaraj TonagattiDear Sneh,

Better to wait for the completion of 10 years, then go ahead for surrender.

Snehthank you sir. Can you please tell me what is the rate or percentage of Bonus/ loyalty addition in Jeevan Saral Policies..I didn’t find it on LIC website as this policy is discontinued now. If Bonus is a very small amount, then maybe it is not worth the wait. What is the total Premium I pay in the next 1 or 2 years will probably exceed the Bonus addition that I get along with surrender value after 10 years.

Basavaraj TonagattiDear Sneh,

It is very much available on LIC website under Bonus Rate tab. This policy not offer you bonus but only LA.

TANMOY MUKHERJEEDear Mr Basavaraj,

I have 2 Jeevan Saral policy. I want to surrender my both policies. What’s your advice…

Details of policy

1) COD – 5/6/2013

Death Sum Assured-625000

Maturity Sum Assured-643675

Premium-30025(yearly)

Term- 20 years(2033)

2) COD – 9/7/2010

Death Sum Assured-62500

Maturity Sum Assured-47325

Premium-255(monthly)

Term- 15years(2025)

Basavaraj TonagattiDear Tanmoy,

Surrender those who completed 10 years.

Kavita KamathHello Sir

I am Kavita Kamath

I have a jeevan saral policy which was taken on 24.02.2011 for a total monthly premium of Rs 1531 incl tax (Yearly 18372). The Maturity Sum Assured is Rs 507360. I have been paying it till date. But now i want to surrender the policy. Can you please let me know what will be my surrender value that i will receive.

Basavaraj TonagattiDear Kavita,

It is better you pay it for one more year (completion of 10 years), then opt for surrender.

AbhijeetHi blogger…thank you for letting us know about Jeevan Saral Plan.

Can you please provide your inputs, as I went to branch for surrendering the policy, but they advised me to pay for 10 yrs and get eligible for additional amount. Should I pay for reaming two years or not (i.e. 2020 and 2021) ?

Here are the details of policy –

Commencement Date : 2012

SA : 5,00,000

Premium : 24,020

Premium Paying Term (Yrs) :21 i.e. 2033

Maturity Sum Assured: 5,79,500.00

Thanks in advance and appreciate your work !!

Basavaraj TonagattiDear Abhijeet,

Better you surrender now.

Rahul GargHello Sir,

Thank you for helping so many people from your blog. It is a great help indeed.

I am in an extreme dilemma right now and would appreciate your guidance. Below is my policy details:

I started it in December year 2011 at the age of 18 and the term is 15 years.

Semi-annual Premium: 18,195.

Maturity Sum Assured: 5,88,450.

Till now I made 16 payments of the same which leads to a total payment of 2,91,120 (18195*2 * 16) and when I recently came to know my surrender value which is 2,51,000.

I was planning to surrender the policy but checking this loss stopped me, Initially, I was having high hopes but now my target is to reduce the loss as much as I can. I am also not clear with the calculation of Loyalty Additions.

Should I continue with this policy for another 6.5 years or another 1.5 years for LA or should I surrender it asap?

Kindly suggest.

Basavaraj TonagattiDear Rahul,

The more you try to reduce the loss, the more you will be under the trap.

DineshHi Basuji,

I am confused regarding surrender value clause.

“Special Surrender Value 100% of MSA if premiums are paid for 5 years or more.”

Policy name : Jeevan Saral

Term : 30 years

Premium: 6125 quarterly

Purchased in 2011

Age was 26 at the time of purchase

So, If I calculate the surrender value as per clause as per my understanding it is around Rs. 222590 [=Premium paid till date in years (7.5) x MSA (890360) /policy term in years(30)]. For this calculation I have taken MSA value which is mentioned on my bond.

But when I have checked with LIC office it is only Rs. 155655 (against Rs.183750 total premiums paid till date).Could you please provide your guidance what is going wrong as I am not getting what i have paid till date as per clause.

What can be done to get the at least the amount which I have paid till date for premium while surrendering the policy?

Basavaraj TonagattiDear Dinesh,

MSA value which you took is for that particular 30 years. You have to reduce the MSA to the 7 years and do the calculation accordingly. This is the catch with this product.

vineet wahiHi…

Need advice …!

Policy name : Jeevan Saral

Term : 35 years

Premium: 3062 pm

Purchased in 2011

Age was 29

Should I continue with the same or should I surrender

Basavaraj TonagattiDear Vineet,

Continue-If you feel the Life Coverage is sufficient for your family to survive (if death occurs today) and also if you feel 5% to 6% returns are BEST for you.

Discontinue-If you feel both above points are not meeting with this policy.

vineet wahiHi,

I do have other lic policy along with 75lac term policy. I want to know if This policy can give me a good return at the time of maturity cuz someone told me to surrender this policy and switch to a good / high return policy.

What should I do please suggest .

KSHIRSAGARMonthly premium Rs.1000/- ,Age at the time of policy 34 , term is 10 years Lic calculated maturity sum assured @10889 and loyalty addition @355

pls adv how this figures were calculated .

Why exaggerated returns shown by Lic while introducing policy ?

Basavaraj TonagattiDear Kshirsagar,

For your information, such exaggerated figures were not shown by LIC but by few agents.

lalitHi Tonagatti,

Thanks for your effforts in putting this information in a blog.

I am staying out of india so difficult to visit branch and get things done.

If you dont mind can you please help with the calculation.

I took the policy in dec 2012 at the age of 29 for half yearly premium 9097 (yearly it becomes 18194 Inr) .

I took it as the agent was close relative and now when i review all my financial investment , I find this policy as not a great option and rather i will prefer some MUTUAL FUND + Term policy.

How much roughly I can get now (18194 * 6 years = 109164 INR Premium paid so far) If i surrender the policy. what is the best option to come out or better to stay invested in this ?.if really the return is 4-5% then definately i am looking to come out of it?

Basavaraj TonagattiDear Lalit,

You no need to visit the branch, instead, call them and get the information. However, yes the returns will be around 4% to 5%.

NikhilHi Basvaraj,

You said you will are “working on this chart and soon will upload the whole Basic Maturity Sum Assured Chart”.

Can you share the chart or excel sheet.

Basavaraj TonagattiDear Nikhil,

Let me share it soon.

Sanket JadhavHello Basavaraj,

My plan details are as below.

Plan : Jeevan Saral

DOC : 28/04/2010

Term : 31 Years

Premium : 16844 (Quarterly)

Sum Assured : 13,75,000

1) Can you please let me know if the SA they have mentioned is correct for a policy of 31 yr terms?

2) I wanted it to surrender after 10 year completion, so what will be the amount I’ll get assuming today’s loyalty addition rates.

Basavaraj TonagattiDear Sanket,

1) How can I say this without knowing your details (like date of birth and all)? Better to contact LIC branch in this regard.

2) It will be around 4% to 5% returns (It is hard for me to calculate each individual).

Sanket+JadhavThank you Basavaraj. I’ll get the details from LIC branch and will share here.

Basavaraj TonagattiDear Sanket,

Sure.

Indro SaikiaDear Basavaraj,

Thanks a lot for the great service to society by educating people with your informative posts.

I have a query w.r.t. my Jeevan Saral policy. Here are the details:

– Monthly premium: 4083/-

– Death benefit: 1000000/-

– Sum assured: 1450000 + Loyalty addition

– Policy term: 25 years

– Policy start: 2009 (9 years)

I have been contemplating since a long time to surrender the policy, but have been advised by agent to continue until completion of 10 years since Loyalty bonuses start getting added after that. As per details provided in your post, will I be eligible for full MSA (14.5 lacs) since I will have completed 10 years, plus the loyalty addition on the MSA? Based on this, the total value should be 14.5 lacs + 4.35 lacs(loyalty). Is this calculation correct? Can you please guide?

Basavaraj TonagattiDear Indro,

If you go to surrender at 10th year, then your MSA will not be Rs.14.5 lakh. They reduce to the applicable 10 year’s MSA and based on that they will pay the LA. This is where many got cheated and this is where many got confused.

Indro SaikiaDear Basavaraj,

Thanks for your response. Yes, I called up the LIC customer care number provided in one of the comments below, and got to know that the total amount I will get (surrender value + LA) if I happen to surrender on 10th year, will be around 6.22 Lacs, which will be a return of 1.32Lacs in 10 years (even less than what an RD at 7% would give). If I surrender now (9th year), my total surrender value will be around 3.5 lacs, which is less than 1.5 lacs of what I have invested so far. So I believe waiting another year will be more useful at this stage?

However the LIC lady also informed that over the years, this return will increase manyfold, considering many people have already surrendered the policy and ones left will surely get the benefit. Although I am not sure if that can be believed.

Basavaraj TonagattiDear Indro,

It is up to you to wait and see. Regarding LIC lady claim, she is completely misguiding you.

Vinod PandeyDear Basavaraj, thanks for this blog & info on Jeevan Saral policy. I have done some calculation & tried to compute the returns this policy would give at different time frame & would like to share that file with you for your inputs. Please guide as to how i can share the file with you.

Regards,

Vinod

Basavaraj TonagattiDear Vinod,

Send the file to [email protected].

SachinDear Sir

I have paid premium for Jeevan Saral for 8 yrs. now.

Wanted to surrender my policy ,however my LIC agent was telling me to wait for it to complete 10 yrs. to avail the loyalty bonus.

Should I wait for Loyalty Additions ,is it a good amount to wait for ?

Basavaraj TonagattiDear Sachin, In my view, not a good idea to wait for another 2 years.

SRRIn some cases you tell people to wait for 10 years to surrender, and for some you tell them not to pay for 2 more years to complete 10 yrs.

Would be good, if you clear up the matter in just a few lines, about what the matter really is.

I would think along following lines .. when you go buy insurance for your car, you buy it every year. It is only when you meet with an accident, that your losses are covered. You are paying the insurance company to cover your risk, and not to earn money like in a bank fd. Your car insurance premiums are used by the company for paying for the losses incurred by just one car involved in an accident out of say a 100 other premium paying cars. The insurance company also recovers it’s own costs and makes profits. Covering risks is an entirely different matter than investing. This Saral is more of a risk covering thing, as compared to other life products. Higher the age of the insured, higher is the risk covered by LIC. Lower will be your maturity benefit.

Basavaraj TonagattiDear SRR,

If the policy period is about to complete 10 years, then it is better to continue and complete 10 years as LIC will consider 10 years of LA. However, for those who completed more than 10 years, they may discontinue at any point of time.

Now, coming back to your LOGIC of comparing general insurance to life insurance, your comparison itself is illogical. You are comparing Life Insurance with Idemnity insurance. In one way you preach “Covering risks is an entirely different matter than investing”, by saying so, do you think this policy the risk coverage of this product is far better than even TERM LIFE INSURANCE? First, decide yourself on what point you wish to defend. Whether you wish to consider this product as risk-mitigating or investment product. If this product was so fantastic, there may not be cases pending against LIC.

PRANOY DEYsir my agent told me that i will get 45 lakh after 35 years in jeevan saral policy. monthly premium is 2100…. can you tell me is it possible???

Basavaraj TonagattiPranoy-Calculate based on above post and arrive at who is right and wrong. Usually, agents exaggerate returns to show some fancy numbers. But the returns from this policy will not cross more than 5% to 6%.

AkashHi,

I have taken policy in year 2007 with annual premium is 24020 for 20 years, Sum assured is 500000. I understand that at maturity time, I will get assured sum + Loyality bonus.

1. I would like to know what will be loyality bonus.

2. I have paid premium till 11 years. IS it ok to complete 20 years or shall i withdraw now. ? if i will withdraw now, what will be surrender value?

Basavaraj TonagattiAkash-At maturity, you will not receive assured sum but the MATURITY SUM ASSURED+LA. Refer to post and comments for LA assumption. You can continue this policy if you feel 5% to 6% is the best return for your 20 years of investment.

Akashmy DOB is 24-04-1985

Basavaraj TonagattiAkash-Refer above post.

AkashThanks for the reply. If I understand correctly, LA will be 500000* 525/1000 after end of 11 year. That will be around 2.6 lakhs. So 2.6 + 5 . Total will be 7.6 after 11 years. Is calculation correct?

Basavaraj TonagattiAkash-Here LA will be based on MSA but not on SA.

SagarAkash please follow below steps and pls pls reply to contribute back to help lacs of other Jeevan Saral buyers as you are one of the unique buyer who has completed 10 years in Jeevan Saral:

Step 1:- Just call LIC customer care -02227725968..it is quite busy number but try continuously and provide you policy number they will tell you the exact surrender value.

Step2 :-Please share surrender value you get from LIC customer care and also share what surrender value is shown in the chart given to you by LIC agent at time of buying policy. This info will help lot of people. Thanks in advance Akash

Bhuvanesh RajpurohitHi Akash,

Can you share information if you have already done above steps suggested by Sagar?

I have this poilicy which has completed 7 years. I am planning to continue till 10 years thinking about the LA which i will get if i complete 10 years. At-least then I will have no loss but surely very less returns. I hope my understanding is right 🙁

Thanks,

Bhuvan

RNagpalHi Sagar,

Please advise how much you got after surrendering.

My policy has completed 10 years now and I want to pay the premium and surrender.

Basavaraj TonagattiDear Rnagpal,

It depends on many cases. You can’t assume based on what others get.

Srinivas RHi Basavraj, below are my policy details:

Age: 28 Yrs

Instalment Premium: ? 48,040.00(Yly)

Premium Paying Term: 32 Yrs

Policy Term: 32 Yrs

Sum Assured: ? 10,00,000

Commencement Date: 24/02/2010

Date of Maturity: 24/02/2042

Could you please help me with the Maturity Sum Assured and LA at time of Matiruty?

Basavaraj TonagattiSrinivas-Please refer above post and also the comments.

Sunil Kumar KDear Basavaraj,

I have taken the following policy for my life coverage + investment.

Jeevan Saral (Plan-165) , Premium 25,382 p.m. (annual Rs. 3,09,984)

Started when I was 34 years on 04/09/2012. Policy term is 33 years. Maturity is 04/09/2045.

I may not be able to pay this huge monthly premium till its maturity date. If I surrender now how much I will get. OR should I continue this till its 10th year? I dont have a good term policy for my life cover. What should I do with the policy? Please advice.

Thanks,

Sunil

Basavaraj TonagattiSunil-Better to surrender. Regarding values, contact the LIC Branch.

Sunil Kumar KThanks Basavaraj for the quick response. Any suggestion on the replacement policy/investments after I stop my Jeevan Saral

Basavaraj TonagattiSunil-That depends on many things. Hard to say BLINDLY.

SunilBasavaraj, can I stop further premiums and wait till it reaches 10 years before surrendering?

Basavaraj TonagattiDear Sunil,

Yes you can do so.

DeveshI have taken Jevan Saral Policy (165) with yearly premium – 48040 rs/- on 2011-12 academic year.

Policy name Name : Jevan Saral(165)

premium : 48040 (yearly)

taken at age : 24

Maturity Sum Assured :2109640

Death Benefit Sum Assured : 1000000

Policy Term : 35

When my age will be 59 years old (If I am alive), the policy will matured and I will get 2109640 Rs. Hence, Maturity sum assured is fixed on my policy and it will be approximate 24 % of total premium I have paid.

48040 x 35 = 1681400 Rs and its 24 % will be my Maturity Sum assured.

You are telling that Maturity sum is not fixed but inmy policy it is fixed and 2109640 r s has been printed in my policy.

Please guide me if my thinking and calculations are right …….

Basavaraj TonagattiDevesh-MSA not fixed but depends on your age, premium and term.

DeveshThank you for quick reply. Hence, as per above policy containing my age,premium and term, when my age will be 59 years old (If I am alive), the policy will matured and I will get 2109640 Rs. Am I right?

Basavaraj TonagattiDevesh-You will receive the applicable MSA+LA.

AmitI have a 5 lac policy which I have taken for 25 years in 2009. I am paying 24000 yearly premium, since last 8.5 years. I am now unable to bear the premiums and want to stop paying it. How much will I lose if I surrender the policy now, does it make sense to continue paying premiums? At this stage, will I gain more if I were to still surrender it and invest in MF SIP for example.

Basavaraj TonagattiAmit-If you are unable to bear the premiums then no need continue this policy. Regarding values, visit the concerned branch.

SheldonSo I have a small doubt here.

I have 2 policies of Jeevan Saral.

1) First was taken by my father when I was 12 in the year 2009. The Death Sum Assured is 200000. The Maturity Sum Assured is 224848. There’s a monthly installment of 800 on it. They are not taking any Accident Benefit Premium from me. So anyway, after calculation, it shows me, I will get approx. 1.2Lakhs, if I mature it after 10 years. So its a profit for me as I am paying 96000 for 10 years [800*12months*10years] and receiving almost 1.2Lakh after 10 years that is in 2019. Am I correct in this calculation?

2) The second and the same policy was taken by my father for himself when he was 55 years old in the same year i.e. 2009. The Death Sum Assured is 200000 for this also. The Maturity Sum Assured is 69240. There’s a monthly installment of 817 on this one though. So we would pay Rs. 98040 for 10 years [817*12*10] and what we are getting after maturing it after 10 years is Rs. 69505 approx. So basically this is a pure loss right? We just spoke with our agent regarding surrendering the policy & he said we will get around 76K if we surrender it now which I guess is a lesser loss comparatively. So is my calculation correct? What do the people here think about it?

I highly appreciate your response. Please guide us with this.

Basavaraj TonagattiSheldon-1) Use IRR calculation to arrive at how much PERCENTAGE will be your earning.

2) I am not sure on what basis you are assuming and calculating. Refer above post properly and calculate IRR.

Dilip KulkarniFrom my experience with Jeevan Saral policies I can say that if the policy is taken at a young age, preferably below 35 years, then only you can expect to be in the positive. Those who have taken after age of 35-40 years will be in a loss whether you wait for maturity or surrender it. I suppose you have understood the special surrender and loyalty addition clauses. Main thing in this policy is understanding the maturity sum assured concept. I am sure that most LIC agents also will not be able to answer any questions on that.

MohitSir , still I am v much confused gone through the whole article , which is V nice But need your help.

I have taken this jeevan saral policy for 16 yrs and I am paying 10,208 ra monthly to LIC .

I have started this police since Oct’11 .

Sir how much will i get if i surrender this plan after 10 yrs ?

If after 16 yrs ?

If today ?

The LA which lic declares gets accumulated each year or not .suppose whatever LA lic declared for year 11 -12 and subsequent yrs will be added to my plan or not or will LA will only start after 10 yrs .

Pl help and advise

Dilip KulkarniLoyalty addition is only one time. At maturity or surrender after 10 years. Do you know what is the maturity sum assured? (not the death sum assured). Moreover the loyalty depends on the maturity sum assured and the sum changes every progressive year.

Dilip KulkarniThe real problem with this policy is that probably not even one policy holder, including me, knows about the maturity sum assured and neither any agent knows or even if he knows he does not communicate with the customer. If one knows the maturity sum assured then it is easy to understand the various scenarios about the policy.

SagarReposting:

just call LIC customer care -02227725968..it quite busy number but try continuously and provide you policy number they will tell you the exact surrender value.

Basavraj I believe you have to put this number in topic heading to avoid repetitive posting 🙂

Basavaraj TonagattiSagar-Ha ha..Sure.

SreenivasNow you can see the MSA in your policy schedule PDF which is available online on LIC portal. I just downloaded checked today.

deepakHi Shri..

I dont see that MSA in portal 🙁 ,can you guide me please where to check exactly.

Basavaraj TonagattiDeepak-NO NEED TO CHECK ANYWHERE. It is written on your LIC Bond itself.

Basavaraj TonagattiMohit-LA is one time payment and be considered based on the year in which you will close the plan and depends on the MSA of that particular year. Hence, you have to contact the branch for a better understanding of exact amount.

AmiThanks this is the first time I am able to get hold of the terms of the policy , it bad we were trusting and naive at the time of purchase , and the agent happens to be a distant relative.

My take 0-4 years surrender, 9+ years wait for magic 10; thanks and greetings to curator of the blog

Basavaraj TonagattiAmi-You are now in the right direction.

Dilip KulkarniAge is an important factor in determining maturity sum surrendered. In my opinion those who have taken the policy below the age of 35 can expect to get some return, though not even comparable to FD, and those who have taken above age of 35-40 should not expect to get any positive return.

Basavaraj TonagattiDilip-It is indeed. But why one has to sacrifice for low negative real return for long term investment?

A MohantyHi,

I’v2 2 Jeevan Saral Policies with combined premium of 10k per month. It’s been 5 years since I’m paying premiums and about to pay the 6th (almost 6 lacs I’ve paid already).

I realise that I’ve committed a mistake going for this. I want to surrender both the policies. But the confusion is whether I should surrender it right now or it’s better to wait for 10 years so that I can get some LA when I surrender.

Please help me calculate the surrender value now and after 10 years (considering the current loyalty bonus for 10 years). It would be a great help so that I can decide on what to do.

Basavaraj TonagattiMohanty-Better to surrender now. Regarding values, better contact the LIC branch.

A MohantyThanks a lot. From your reply, one thing I understood that there’s no point holding it for more time.

Thanks again.

Basavaraj TonagattiMohanty-YES.

Vinay Narhari BhagwatSir,I have taken Jeevan Saral Policy and completed 10 years and paid 10 premiums and last 10th Premium paid on July 2017, amount 18.015 INR

Can you please guide me ,should i surrender the policy?

Actually i want to surrender this policy

What will be approximately surrender value?

Basavaraj TonagattiVinay-Continue if you feel the returns of around 5% to 6% is BEST. Else better to surrender.

sagarHello Vinay,

just call LIC customer care -02227725968..it quite busy number but try continuously and provide you policy number they will tell you the exact surrender value.

Please share surrender value you get from LIC customer care and also share what surrender value is shown in the chart given to you by LIC agent at time of buying policy. This info will help lot of people. Thanks in advance Vinay.

Thanks Basavaraj for this thread

Basavaraj TonagattiSagar-Thanks for sharing this 🙂

SagarHello Vinay,

Highly Appreciate if you respond for below query, as you are the rare candidate who has completed 10 years with Jevan Saral…I have just completed 7 years and searching for candidate with 10 yrs completion to decide whether it make sense to wait for next 3 yrs.

Question:-

Please share surrender value you get from LIC customer care and also share what surrender value is shown in the chart given to you by LIC agent at time of buying policy. This info will help lot of people. Thanks in advance Vinay.

Umesh kokitkarHi, I have taken Jeevan Saral t.no 165 policy in 2013 and for 35 yrs.

Monthly pay = 3060 (12 policies 255 * 12 = 3060)

Wanted to know maturity amount after end of policy (@35 yrs completion)

Basavaraj TonagattiUmesh-Refer above post and below comments.

AlpeshHello Basavaraj ji !!

Part 1

I have taken 3 policies for Jeevan Saral

1 ) Policy 1(self)—335640(Current surrender value)—taken on 09/2009—taken on 12/2013—-Annual premium 48040—paid 7 premiums till date

2 ) Policy 2(sister)—373889(Current surrender value)—taken on 09/2009—-Annual premium 48040—paid 7 premiums till date

3 ) Policy 3(brother)—-333861(Current surrender value)—taken on 09/2009—-Annual premium 48040—paid 7 premiums till date

Policy term is 35 years.

I had asked the advisor to drew for 10 years but he drew for 35 years saying you can stop it whenever you want after 10 years.

I won’t be able to continue this policy for 35 years.

The Insurance advisor who drew this policy said you have to pay premiums till 2018 in order to get more than what you have invested.

Please guide !

Part 2

Jeevan Anand

1 ) Policy 1(self)—57540(Current surrender value)—taken on 12/2013—Annual premium 25191—paid 4 premiums till date

2 ) Policy 2(brother)—56940(Current surrender value)—taken on 12/2013—-Annual premium 24906—paid 4 premiums till date

Policy term is 21 years.

I had asked the advisor to drew for 10 years but he drew for 21 years saying you can stop it whenever you want after 10 years.

I won’t be able to continue this policy for 21 years.

The Insurance advisor who drew this policy said you have to pay premiums till 2022 in order to get more than what you have invested.

Please guide !

When shall I surrender

Part 1— Jeevan Saral policies

Part 2— Jeevan Anand policies

in order to get more than what I have invested ? So that I do not lose on the hard earned money.

Thank you in advance !

Basavaraj TonagattiAlpesh-You are in trap. Also, in search of getting profit from these, you pay more and more and finally end up with savings account return. You can come out from those policies which completed 3 years. No point in being ADAMANT that I not BOOK LOSS 🙂 If you close and invest wisely in future, then definitely you can compensate the same.

Dilip KulkarniLet us all together try to understand some things. Loyalty addition. If someone has purchased a policy of 22 years term having maturity sum assured of Rs. 10 lakhs, then will he get loyalty addition of (400 X 10,00,000)/1000 i.e. 4 lakhs on surrendering after 10 years? how many think this is correct?

What will be the special surrender value after 10 years? [(10/22) X 10,00,000] i.e. Rs. 4,54,545 plus loyalty addition. Any comments on this?

suveenDilip- If someone has purchased a policy of 22 years term having maturity sum assured of Rs. 10 lakhs, then will he get loyalty addition of (400 X 10,00,000)/1000 i.e. 4 lakhs on surrendering after 10 years? how many think this is correct?

In my opinion,its not correct…. Loyalty addition of 4lakh is for complete 22years and for maturity sum assured of 10Lakhs, but for 10years maturity sum is not 10lakhs. It will be somewhere around 3.2lakhs( for exact MSA u can contact customer care and get it)

Now for (320000*300)/1000 = 96000( loyalty addition for 10years)

Total is LA+MSA=96000+320000 = 416000 ( total surrender value after 10years)

Dilip KulkarniCan you see the following link about loyalty addition and post your comments on it.

http://insuranceblog.asia/loyalty-addition-jeevan-saral-policy-2016-17/

Basavaraj TonagattiDilip-What MORE it tells?

Dilip KulkarniIn above example MSA after 10 years is (10/22) X 10lakhs. Is this right? For loyalty addition also the same formula is applied or it is according to the table given in the link.

Dilip KulkarniFormula to calculate loyalty addition: (Maturity Sum Assured/1000)* Rate of Loyalty Addition as per annual premium band

Note: Maturity Sum Assured on policy bond is written according to the term you have chosen at proposal stage. It will not be used to calculate loyalty addition while surrendering the policy before term.

Basavaraj TonagattiDilip-This is what I too explained. In case of this plan, if policy continued for more than 5 years, then while surrendering they reduce the MSA for how long the policy continued.

suveenDilip – It is also same as i discussed in above comments…

For the purpose of determining the rate of loyalty addition for exits by death or surrender or maturity the duration in completed years for which premiums have been paid shall be considered.

For example 10years: you have paid so far 30025*10=300250

Now LA calculated as (300250*400)/1000 = 120100

Total = MSA for 10years( 2.8 lakhs appx) + 120100

This is my understanding, please anyone can comment if you guys have surrender policy after 10 years…

suveenDilip – Exact MSA u can get it from lic customer care service.

LA formula it is according to the table given in the link.

Basavaraj TonagattiSuveen-Correct.

Ashish Kumar RoyDear Mr.Basuvaraj Tonagatti Sir, I am Ashish Kumar Roy from Nagpur I have a Jeevan Saral Policy (2013 table 165/20)and I am paying 72780/- per (36390+36390) as a premium which is very difficult for me to deposit. I wanted to know that after 10 yrs. of my policy if I will surrender how much amount I will get as LA as well as paid amount Kindly calculate and inform me because in that policy its a very worst policy introduce by LIC , so please help me ASAP.

Thanks

Ashish Kumar Roy

Basavaraj TonagattiAshish-Refer my latest LA rates “LIC Bonus Rates for 2017-18 – A complete list“. Using that LA rate, you can calculate on your own.

Dilip KulkarniI bought a Jeevan Saral policy in 2007 at age of 52. Policy term 18 years. Annual premium Rs. 30025. Maturity sum assured is Rs. 6,25,000. Paid 10 premiums. Want to discontinue. How much special surrender value (including loyalty additions) should I expect? will it be (10/18)X625000 plus loyalty addition?

Basavaraj TonagattiDilip-Contact the branch.

suveenhello Dillip Kulkarni,

can u contact branch and post comments on how much surrender value you will get now (policy inforce for 10years)…

Yours comments will be useful for many of us because even I am waiting my policy to complete 10years. so far i paid 6 premium… when i contacted branch to surrender policy they insisted me to continue for 10years..

Dilip KulkarniI have paid the 10th year premium and 10 years will be completed in November. I will contact the LIC office then so that I will get a proper and correct answer. I will post on getting the information. Meanwhile if anyone else is in a similar position and can comment on the situation, they are welcome.

Basavaraj TonagattiDilip-Each individuals values differ and they will come to know when they actually visit the branch. Hence, better you act and share.

SagarNo need to visit branch just call LIC customer care -02227725968..it quite busy number but try continuously and provide you policy number they will tell you the exact surrender value. Please share surrender value if anyone has completed 10 years…Share committed surrender value time of policy taken and actual you get from talking to above number. I have completed 6 years and tato wait till completion of 10 years.

Thanks in advance

Basavaraj TonagattiSuveen-May I know LIC officials login in insisting you continue for 10 years? It is because NO LICian will force you or suggest you to close the policy.

suveenBasavaraj — Lic customer care guy suggested me to continue for 10years so that atleast i will get back 10years premium paid(36030*10=360300) with loyality addition. Altogether with loyal addition i will get more or less 3.6lakhs… So i am waiting for 10years…

Basavaraj TonagattiSuveen-Ask the same guy the IRR %. If it is fetching less than the current Bank FD rate, then what is the use of such product?

SagarYes but even if it gives less than bank FD rate you will loose some part of your 10-12% premium paid till date (i.e. before completing 10 YRS) so this loss of 10-12% is making me to wait till completion of 10 years. Your suggestions are welcome on my decision to wait for 10 years(7 years already completed, 3 yrs pending)

AnandI had started the policy in 2007, with annual premium of 24020 in Jeevan saral policy. currently the surrender value revealed is about 357,315/-. Two years back it was 166,000/-

I got info from the customer zone, that new declaration happens in September. So i am thinking right now, what time to exit within this year to get best surrender value. Any inputs or thoughts?

Basavaraj TonagattiAnand-The best day is TODAY.

Anandwill i get additional LA which may be declared in September? Is there any such thing? will the surrender value vary as on today and one month later?

Since i have completed the “magical 10 year”, then with small wait, i may achieve something better.. unless there is no change at all..

Basavaraj TonagattiAnand-That magical 10 years or that surprising additional LA will not add any value to you. Rest you are free to decide.

NikunjHi,

I have taken New Jeevan Anand policy in 2015 with sum assured of 2625000 and premium of 122000 annually. Return comes out 6.2% on recurring but problem is how to calculate Maturity Amount? Even LIC don’t write on website. Agent has written 70L rs after 25 years but based on LIC calculation ( Sum assured + Bonus) it comes out very less as bonus declared is 49rs. Please help if I should continue it or I will get atleast 70L+.

Please help asap !

Basavaraj TonagattiNikung-Your return expectation is correct. Please refer my earlier post where I shared a video of how to calculate returns “Video tutor-How to calculate LIC policies maturity amount and returns?“.

SagarHello Anand,

The surrender value of 357,315/- is matching with the chart given by LIC agent while buying the policy? If not how much is the difference? Please reply, as this will help me as I am in 8th year of this policy

Dilip KulkarniSagar, whatever your decision, please post it on this forum. I think there is no harm in waiting for 10 years to complete. Not 10 premiums but 10 years total. I am also waiting for my policy to complete 10 years which is October end this year. My annual premium for 18 year policdy is Rs. 30,025. I also was given a quote of about 1,65.000/ two years ago.

Dilip KulkarniIf you surrender before 10 years you normally get lesser than what you have paid. If you surrender after 10 years at least the loyalty bonus makes the amount what you get more than what you have paid. But if you calculate rate of return it is very low in both cases.

Basavaraj TonagattiDilip-If you surrender it after 12th year, then it will be more than what you surrender in 9th or 10 years.

Dilip KulkarniI think the question was asked by Anand, not Sagar. So the answer is for Anand. Sagar’s views are also welcome

AnandHi,Sagar, Chart showed about 349000 for surrendering in year 2017. But after 10 years, returns are just 5-6%. So it’s not worth investment..mixing insurance and investment is not appropriate..

SaralRiderHi Anand,

The chart showed you 349k but you your value is 357k. I think you did well. Also, to my understanding, mixing insurance and insurance is best option if you diversify your portfolio properly.

Getting 6% is not bad. Don’t forget that you have 10k deductible from your income which reduces you tax, and you get tax free money when you surrender. So, when you consider all benefits, your RoR could be 10%.

And don’t forget that it covers the risk 250 times your monthly premium.

I think, this policy is like seed of a fruit tree you plant, you will have to remain patience to bear a fruit.

Basavaraj TonagattiSaralRider-Getting 6% for long term investment is NOT BAD? God save you and to whom you are suggesting. LET GOD PREVAIL SOME KNOWLEDGE ON YOU.

Basavaraj TonagattiSagar-MSA mentioned in BOND holds good if you hold the policy until maturity.

Anil KumarI have taken Jevan Saral Policy (165) with yearly premium – 48040 rs/- on 2011-12 academic year.

Policy name Name : Jevan Saral(165)

premium : 48040 (yearly)

taken at age : 25

Sum Assured : 1000000

Policy Term : 35

1. As of i have completed 6yrs payment and what is the maximum amount if i continue this policy for 35 years?

2. Is it recommended to continue this policy for that such longer period?

Basavaraj TonagattiAnil-1) Around 5% to 6%.

2) If you are satisfied with the return I shared in the first answer, then continue. Else, think seriously.

Anil KumarThanks quick reply Basavaraj.

When i calculate got the following amount with rate of interest 5 to 6% (4,820,926.32 to 6,043,766.04) I am thinking or calculated right way?.

Do we have any other best policy in market to get more life coverage and returns?

Basavaraj TonagattiAnil-Whether your concern is buying a right and enough Life Insurance or Investment? Thumb rule is that never combine both.

Neeraj SinglaHello Sir,

One of LIC Agents has given approx 15 policies Jeevan Saral policy to my father. Some of them are monthy,quartely and half yearly plan. Approximately we pay 60000 per year. We have have paid the premiums for these policies for 5 years. Some of these policies are on my name , my brother,my sister,my mother and fathers name. We want to surrender these policies as its difficult for us to pay the premiums. So how much surrender value we get? If we continue the policies on my father’s name would it be beneficial and how much sum assured vlaues we get after 10/15 years. Please find below details:

4 policies half yearly >> Rs1516

5 ploicies quarlety >> Rs766

7 policies yearly >> 2426

Thanks & Regards

Neeraj Singla

Basavaraj TonagattiNeeraj-After reading below comments, you still asking whether to continue or not? Visit the nearest branch to understand the surrender values.

Neeraj SinglaI checked with LIC office and they said we would not get full premiums.We have paid 300000 and they said we would get approx 220000 only. But as per below statement shouldn’t we get Full premium as we have paid for 5 years? Please clear this doubt.

“b) Special Surrender Value-It will be of 1+2 options given below.

1) 80% of MSA will be paid if less than 4 years premium paid, 90% of MSA if between 4 to less than 5 years of premium paid and 100% of MSA if premiums are paid for 5 years or more.”

Basavaraj TonagattiNeeraj-I am not said you will get full of what you paid, but I said that MSA will be reduced as per 5 years tenure and can be paid to you. MSA of 5 years will be reduced, which may be lesser than your premium paid.

Neeraj SinglaOK. Thanks alot for your advice.

Mark SabastianHi Good Evening Sir,

I have seen quite a few advice from you for others and I do appreciate your time.

Need a help on the policy which I took couple of years back.

Policy name – Jeevan Saral with Profits

Table – 165

Term – 20

Maturity sum assured – 10,00,000

Premium method – Yearly

Premiums paid – 5

First premium – Dec 2012

Premium – Rs. 48,040.00

Next Premium due – Dec 2017

Policy Status – Active

The main reason for me to start this policy was to save money & avoid tax on the other hand so I spoke to an agent who said this policy should suite my needs, I specifically asked him if i need to close the policy any time will I get my money back? He answered yes however, would need to wait for 3 years.

Post 3 years when I spoke to customer service they said I would loose some money if I cancel, and advised to complete 5 years for some benefits.

Now, I have paid all 5 premiums which is 48,040*5=2,40,200 & when I checked with customer service they advised me that I wouldn’t get the complete amount. I feel like getting fooled as I am loosing my hard earned money. I think I heard saying I would get only 1,80,000 if i cancel.

Please advise is it best to cancel policy or is there any way for me to get my complete money if i extend for 10 years for loyalty benefits. If I also extend for 10 years I am afraid as i may not get 48040*10=4,80,400. Kindly advice.

Regards,

Mark Sabastian

[email protected]

9886699593

Basavaraj TonagattiMark-Better to discontinue. You asked for SAVING and TAX BENEFITS to your agent. So he provided that option, but not an INVESTMENT OPTION. Hence, in my view agent not did anything wrong. But it is mis-buying than misselling.

Mark SabastianThank you so much for your feedback, just one thing I need to ask you sir….,

If I ever continue or wait till I cover my complete tenure, is there any benefits for this policy or will I still lose my money. Please suggest.

Basavaraj TonagattiMark-You will not lose money but end up with less returns.

Mark SabastianCan you tell me how much would I get if I continue for next 5 years, which is ten years in total please.

Sorry to be a pain but your inputs will make me to take decision.

Basavaraj TonagattiMark-I can’t tell the exact figures. But returns will be around 5% to 6%.

Mark SabastianWhen you say 5 to 6 percent, is it my total premiums paid for ten years with 5 to 6 percent approx additional or am I missing some thing else?

Basavaraj TonagattiMark-It is 5% to 6% on your total premium paid over the period of time.

Mark SabastianHi Sir,

I have paid premium – 48,040.00 for 6 years which is so far 2,88,240.00

I should be able to manage for another 4 years, which would be 10 years if in total and total would come up to (48040*10) = 4,80,400.00

Hence, if I surrender post 10 years, I should except returns of 4,80,400.00 + 5 or 6 % extra.

Please correct me if I am wrong… Thanks!

Basavaraj TonagattiMark-It may be around 3% to 4%.

siba dalaidear sir,

i have bought a jeevan saral policy on 22/2/2011 for a period of 20 years. firstly it was monthly plan of rs. 5104 and thereafter changed to quarterly amount of rs. 15,312. sum assured was 12,5000/- . date of birth is 26/10/1983.

sir, i am really sorry to state that being very poor in calculations, i need your expert advice. my querries are :

1. what amount will i get at the end of 20 years.

2. what amount will i get if i surrender it now ( already 5 years over)

3. should i continue here or invest it in mutual funds.

please advice. no one is helping me out. and you have been so kind in answering everyone’s doubts. the lic agent isnt helping out sincerely. thanks sir in advance.

siba dalaisorry sir, sum assured is 12,50,000/-

Basavaraj TonagattiSiba-Refer above post and around 1000 comments. You will come to know the answer.

M. Sahamy premium is 3062 per quarter ( I think net premium) …. SA is 2.5 lacs ….. term is 20 years… i bought it in Dec 2010 … What would be my return after maturity in year 2030 ? can you elaborate with a chart or breakup amount.

Basavaraj TonagattiSaha-Elaborated already in above post and if you go through the comments, then you can understand the return expectation from this plan (around 5% to 6%).

AmarI invested Rs 24020/- for 3 years till Dec 2016.Recently I have taken a term plan also for 50lakhs from LIC. I am investing in PPF also.I am very much confused whether to divert this premium amount towards ELSS fund or continue with the policy till 11 years or 25 years.My policy term is 25 years.The maturity sum assured is around Rs7.5 lakhs in policy bond.

Basavaraj TonagattiAmar-What prompted you to buy this product and why you now feeling this to close?

AmarActually I was not so investment conscious about my investment portfolio at that time as i was not coming in any tax bracket.Now, I am in 20 % tax bracket.At that time I was not aware of Term plan and also was not comfortable in investing any Private Companies.I used to deposit in only PPF. At that time I was feeling i am short of Insurance and hence bought this policy without keeping any perspective in mind that I am taking this policy for Investment or Insurance.Now , when I am trying to take advise from others.Some are advising me to surrender and some say the policy is good you should continue for at least 10 years. I am 34 now and dont want to take any wrong step related to investment and insurance and ruin my later years. I request you to kindly advise whether to continue investing in this policy or discontinue.I really dont mind investing also if I am supposed to get better returns.As, today I feel I am adequately insured as far as Insurance is concerned in comparison to my annual package as I am having another Limited endowment policy of 2 lakhs also from LIC and also insured by my employer for approx 15-18 lakhs.I will be taking your advise as the final call for this policy as I dont wont to linger on with this policy as I have already invested 1.5 lakhs for my Income tax rebate by investing in PPF, PF , LIC(Limited endowment plan) and LIC e term( Cover of 50 lakhs). I have tried enquiring from lot of people related to its return part also. No one is able to give a clear picture in this regard also.

Basavaraj TonagattiAmar-If you have adequate insurance then why you retaining this dummy product? It is your money. Therefore you judge which BEST to you. Hence, never rely on anyone nor listen to those who suggest you based on their opportunity in your investment (agents). Act fastly and close all such dummy products.

AmarOne last question. Should I see this product on investment perspective or Insurance, In case on Investment then what rough percentage can be expected on this product.As this product is giving me only 5 lakh on insurance front and 10 lakh on accidental.

As I have an option of diverting his fund towards NPS and claim 2 lakh of income tax rebate instead of 1.5 lakh in coming financial year.

Incase I am closing this product this year I will booking loss of around 30000/- which I dont mind if I get returns by investing in long term.

Thanking you in advance.

Basavaraj TonagattiAmar-For 10 years of investment and return 5% to 6% enough for you? Is so, then continue. If you consider this product as insurance, then think how long your dependents survive with the death claim amount they receive from this product.

AmarThanks a ton for your advise.Will be applying for surrendering in this scenario.

WayneYou should seek investments in mutual funds through SIP for wealth generation and buy term insurance for pure insurance need.

KeviI have a Jeevan Tarang plan of 10 years policy term. I want to surrender this policy on the 9th year after paying 36 premiums (quarterly payment mode). What is the formula to surrender? I want to know how much I will get.

Basavaraj TonagattiKevi-Check with LIC branch.

SachinHey mate, you have been doing a fabulous job of explaining the intricacies of the Saral Policy. I have been hurt the same with almost paying through the roof per year premium paying in saral. The LIC and their agents just care about their bottom line. They gave wrong charts and return values when they were getting people onto buying their policy. Why can’t they be put behind bar for wrong selling of policies with wrong information.

Basavaraj TonagattiSachin-Sadly none come forward and prove that they wrongly sold.

shankar bagheleDear Sir, I was opened policy jeevan saral 165 plan 22 year in sept-2013 , 25473/- Half yearly. at that time misguide & show me higher return by LIC agent & open this policy. Now I want to surrender this policy after 4 year.

My query is the following question?

1) If continue this policy to full maturity (22year), what is amount I will get?

2) If I surrender this policy after 4 year than how much amount I will get?

3) Can I rest policy after 4 year without pay premium till maturity & after maturity how much I can get.

I want higher return but with this policy I cant get.

please give me proper calculation & suggestion.

Regards

Shankar baghele

Basavaraj TonagattiShankar-I already replied all such queries in below comments. Please go through them.

LICBuyerHi Basavaraj,

I have a query regarding my LIC Jeeval Saral Policy Table no 165. Bought this policy on 28/12/2009 (misguided with the chart which agent showed me) at age 26 Policy term -30 years Premium -72780 yearly (approx 6000 per month) Death Benefit Sum Assured 15Lac. I have already paid for 7 years : approx 5 Lacs. I have also taken loan on this policy last year (May 2015) Loan amount 285000. I have made up my mind to surrender this policy as policy is not good and I am unable to pay premium. Question is should I surrender right now or should i wait for the completion of 10 years for this policy

1. I want to know if it is good idea to hold this policy for 10 years completion (until Dec 2019) so that I get Loyalty addition.

2. What amount I can expect to get in return from this policy after 10 years completion

3. How loan will be handled in this case. Will LIC deduct Loan and interest at the time of surrender. I found that they have already charged 30K interest for 6 months on loan amount of 2,85,000 which is very disappointing. This interest will be charged every six months. I am confused if it is good idea to hold until Dec2019(as holding also means more interest on associated policy loan). But even if I surrender now, I have huge loss.

Really need an advice. Please help!

Basavaraj TonagattiLICBuyer-1) You can surrender now also.

2) Check with LIC.

3) Yes, they deduct all outstanding loan and interest on that before paying you the surrender value.

LICBuyerThanks for your prompt response. Regarding surrender or holding for 10 year(to get LA) which one will better suit me. What approx LA LIC usually provides?

Basavaraj TonagattiLICBuyer-I prefer surrender over holding. Check with LIC for LA rates.

LICBuyerThanks you. you are going a good work in helping people. Genuine advice. Appreciate your efforts!

sachinHello,

i have take jeevan saral policy in november 2009, paying premiun of Rs 48040/- yearly.

Clearly understood that the chart agent showed is misguiding.

Currently i have invested 336000 in total whose surrender value is 316000 right now.

What will be the better option—

1) book loss of 20000 and surrender immediately

2) stop paying premiums and keep the policy active for 3 more years and redeem after completing 10 years of policy so that i am eligible for LA/bonus.

3) pay premiums for 3 more years and then surrender the policy after completing 10 years of policy to avail LA/bonus.

In any case if i surrender i am planning to buy jeevan anand policy for approximate same amount for a period of approximate 30 years.

Basavaraj TonagattiSachin-First one.

sachinThank you ver much.

Can u guide me the base for booking loss ?

sachini mean why did you suggest me to book loss and surrender it..

In case if i reciveLA of rs250 for every 1000, i can get 120000 as LA along with 480000 (total of premium paid)

SachinSorry I have paid 386000 and current surrender value is 316000…so lot of loss..

And I have 3 such policies–mine,sisters n cousins..so lot of loss–a total of 2.1lakhs..

Basavaraj TonagattiSachin-Your loss will be more when you extend. You can compensate the current loss by wisely investing.

SreenivasYou can cover the loss by investing in mutual funds for long term like 15-20 years.

RanjanHello,

I have taken jeevan saral plan dec 2011. and i wand u surrender now. But LIC Agent is saying that.

25000*10 = 250000

Your balance Amount is 250000-85000 = 165000rs

Thanks & Regs.

Ranjan

9999818188

Basavaraj TonagattiRanjan-Don’t believe agents. Go to LIC branch and enquire.

VaibhavSir,

I have completed 6 years of Jeevan saral 20 yr term plan paying of Rs.6406/- quarterly (i.e. approx Rs. 1,53,744/- till date) as an installment. I want to surrender this policy due to some financial problem, so I visited to Lic office and I took surrender value statement. Surrender value is of Rs.1,24,000/- ( approx loss of Rs.30,000/- ) I don’t know how they calculated surrender value but it’s really shocking to loss of Rs 30 k. now what should I do?

Basavaraj TonagattiVaibhav-It is the reality. Either surrender or continue.

GAURAVI have taken Jeevan saral policy for 20 years in Feb 2011, yearly premium is 12k, need your help in below queries-

1.)If i want to surrender policy after 10 years i.e in 2021 then will i be eligible for loyalty additions as total tenure is 20 years?

2.)Is LIC declares Loyalty additions every year for Jeevan saral?

3.)I bought this policy in Delhi now i moved to Bangalore can i surrender the policy in Bangalore LIC office, If yes what is the process for the same?

Basavaraj TonagattiGaurav-1) Yes LA will be payable but based on 10 years but not on 20 years.

2) As of now YES. Not sure about future.

3) NO.

Deepak ShuklaHello Dear,

Under jeevan saral Im paying 6125 INR as monthly premium. At the age 24 I took this plan. Policy term period is 25 years. Agents show very high figh amount in their chart as maturity. But as i received my policy it is showing maturity sum assured approx 20-21 lacs which is very low as compared to agent. I took this plan on 15/10/2012. Kindly help me out what i will get exactly as maturity amount.

Basavaraj TonagattiDeepak-You will receive Maturity Sum assured and Loyalty Addition. Read the above post fully and below comments. You will get an idea.

Rajib LayekI think the LA will be not given as it is applicable only after 10 years. So if someone continue for 11 years then he will get the LA for last one year not for whole 11 years !!

Basavaraj TonagattiRajib-LA is one time payment not for all 10 years or 11 years.

Rajib LayekYes. I understood. Thanks for confirming !!

Ashok Kumar SinghI purchased Jeeven Saral Policy at the age of 32. I have completed the 6 year of premium. Yearly premium is comes 24500. Agent assured me at the time of purchasing the policy that I get more than 10 Lakhs on the maturity of policy after completion of 16 year. Now it is come to my knowledge through some other agents and friends that the chart shown under this policy is fraud.

Will I continue with this policy or not .What is surrender value of this policy at this time. If I continue, will I get the value actually shown in the chart after 16 years? This question has become more relevant as the policy purchased for meet the expenditure at the time of my daughter weeding.

If I surrender the policy, Can you suggest me some other policy or investment plant to meet expenditure mention above. Now my age is 39.

Basavaraj TonagattiAshok-Better to surrender. For surrender value check with LIC branch. You firmly believe that it is a fraud selling. But asking me whether continue or not. The decision is YOUR’s. Without knowing much about you, how can I blindly guide you about investment?

Ashok Kumar SinghThanks for your valuable advise. I am going to surrender this policy. Can you suggest me some other investment option. Am i go with SIP, if yes please suggest some plans.

Thanks for your reply.

Basavaraj TonagattiAshok-Without knowing much about you, how can I guide the investments?

prakash ghugesir i want to surrender my policy

please guide

policy start 28/03/2011

age when started 27 years

monthly preimium 5014

sir pl tell what amout will get me

Basavaraj TonagattiPrakash-Check with your nearest LIC branch.

prakash ghugesir what is better option whether i wiil continue the policy or surrender

Basavaraj TonagattiPrakash-Better to surrender.

prakash ghugeThank u sir

Sheetal BhatHi Basavaraj ji,

I have query regarding my LIC Jeevan Saral policy where i completed 7 years with yearly premium of 36030. When i took this policy he showed a T165 chart and assured that i will take 6.5 lacks after completing 10 years.

when i enrolled my age was 23 and now i am 30 years of age.

Need your kind and valuable advice what shall i do, because what i understood that i may not get assured amount as per chart. Is this total fraud ? please advice as i am really worried.

Basavaraj TonagattiSheetal-He misguided you and it is not assured return. You may expect around 5% to 6% returns. Better to close the policy at the earliest.

Joy MukherjeeDear Basavaraj,

I have two JEEVAN SARAL policy.

DOB: 30-04-1986

Policy taken – 2011 February,

Yearly premium=Rs.18000/-(for 30 yrs term) and Rs.6000/-(for 25 yrs term)

Please tell me the amount if I surrender the policy after 10 years completion. Thanks in advance.

Basavaraj TonagattiJoy-Refer below comments. You will find the answer.

suveenHello Basavaraj Sir,

i planned for Jeevan saral of Rs750000 with annual premium of 36030.

My agent told me i would be getting around 25lakhs after 20 years, i dont know exact MSA or LA.Even though he has given one pamphlet explaining premium & maturity.

Premium – 36030 Rs yearly

term of policy – 20 years

my age 23 years

so pls let me know the actual return after maturity…

2) i have completed 5years, what amount ll i get if i surrender after 5 years..

pls help me out

Basavaraj TonagattiSuveen-You planned or already bought? If you planned, then you can’t. Because this plan is not available now.

suveenSir,

I already bought this policy… I have completed 5 years also…. what amount I ‘ll get if I surrender now?

What ‘ll be my maturity amount if I complete full 20years.

Basavaraj TonagattiSuveen-Contact your LIC branch or refer the below comments.

suveenBasavaraj sir,

1)I have already bought this policy, completed 5 years also..

Premium – 36030 Rs yearly

term of policy – 20 years

my age at time of enrollment – 23 years

so pls let me know the actual return after maturity…

2) what amount will i get if i surrender now( 5 years completed)?

Pls help me out

Basavaraj TonagattiSuveen-Regarding exact amount, contact your LIC branch. Returns may be around 4% to 5%.

RAMACHANDRAN.Arespected

tax saving instrument was top savings PPF,NSC, FD, ULIPs,ELSS,. The explain with total returs to 3 0r 5 years pls send

Basavaraj TonagattiRamachandran-I am unable to understand your requirement.

Shakti PrasadHello,

Please help me on my query as it holds important due to my current financial crunch situation.

I took the ‘LIC Jeevan Saral’ plan started in 2010 for 15 yrs with yearly premium as 25000/. I have already paid for 5 premium terms till 2014 for a sum of nearly 1,25,000/-. But due to i lost my job in 2015 i couldn’t able to pay premium from 2015 & 16. So as i can’t continue this plan due to my bad financial cond. so i want to surrender my policy now after 7 years. So what would be the payout amount to me if i surrender now. I see the current status showing in LIC portal as: “Reduced pay-out.’ Also let me know if i want to pay premium of last year & this year would i asked to pay any penalty?

So kindly update me on my above query. Thnx in advance for your support.

Basavaraj TonagattiShakti-Please contact your nearest branch for the same. Yes, if want to continue the plan, then you have to pay the penalty.

ShaktiHi Basa,

Thanks for giving quick update. But as i am staying outside of state current for a job search so can’t make to home now.

Its been 6.2 yrs now from the commencement of policy so can you please anticipate what’s the surrender amount i would get where i have paid 1,20000/- for 5 years,i expect to get at par with my total paid premium or little higher from that but not sure. I believe as a financial analyst you can give me at par update if not concrete. Please update me here.

Regards,

Shakti

Basavaraj TonagattiShakti-You refer above post and below comments. You will get an idea of how to calculate on your OWN. You no need to be in same state to know the status. Visit nearby LIC branch and get the status.

AngelBad blog. You don’t answer straight questions

Basavaraj TonagattiAngel-Yes, because money is not easy thing.

Sandip GDear Mr.Basavaraj,

I have taken Jeevan Anand in Feb 2012 with half yearly premium of 52300 approx for 25 yrs with sum assured of 25L at the age of 32yrs.

But after your reviews and lots of search I found that it is better to go for term insurance and balance with other investment as this policy will give max to 6%.

Can you suggest is it better to leave/surrender with Jeevan anand.

Also can you suggest where should I invest the balance.

Basavaraj TonagattiSandip-It is better to surrender. But investing the rest of amount depends on your financial goals, which I can’t say plainly.

Saurabh NegiHellow Basavaraj,

thanks for such an informative post regarding LIC Jeevan Saral Policy. I am myself struggling to get the clearer picture regarding the Maturity Amount. I purchased this policy @ 24yrs , Single Premium 48040 INR, 5 yrs completed. My policy paper mentions MSA : 1159520 INR (along with Death benifit & Term Rider sumof 10 Lakh each) but in my policy premium receipt its showing MSA = 10Lakh while that confusing chart showing somewhere around 54 Lakh. I think all of us are having this same confusion. I will b happy if i am getting 5-7% interest overall at the end of policy, if not please suggest if i should stop paying further and get whatever i can get back.

Regards

Saurabh negi

[email protected]

Basavaraj TonagattiSaurabh-If you have doubt about MSA, then contact the branch.

pinkal mahajanhi my name is pinkal mahajan i am 29 years of age i got this policy at the age of 24. i have been paying 72000rs per year can you please tekk me how much i will get after 35 years. on the chart(165) it says some 22000000rs. but when i contact branch they say something else. please clarify this.

Basavaraj TonagattiPinkar-Refer my above post and below comments. You will not get more than 5% return. Rest is left with you to decide.

Chhavi SinhaHi Basavaraj,

I had taken Jeevan Saral in June 2011 with a monthly premium of Rs 6123/-, which means i am putting Rs 73476 in a year in my Jeevan Saral account. my policy will be completing 5 years by June 2016 and i was thinking weather to continue with it or not because people were telling me that i am paying a very high premium and the returns are not as expected and it is better off to put the money into PPF account where i can have better returns.

so there can be few options that i was thinking about and i am confused:

1. to close the policy after 5 years, could you please tell me what is the amount that i should be getting ?

2. secondly , since its a flexible policy i thought of reducing the Premium amount to Rs 1000 or 1500 per month.

3. surrender policy after 10 years and continue to pay what i am paying at the moment.

i am 42 year old and need to have good investment. let me know what you say.

Regards

Chhavi

Basavaraj TonagattiChhavi-1) Contact LIC branch. 2) What is use? 3) It is of no use.

Raja SMy policy was started on March 2013 and have paid till May 2015 without interruption. Its jeevan saral with DAB – Premium monthly 3062.. Almost i had paid the premium for 2 years 3 months.. 9 months i did not pay the premium as per schedule. Almost 3 years completed now.. Now the policy status is lapsed without surrender value. Can i withdraw my amount now?

Basavaraj TonagattiRaja-No, you can’t withdraw. If you want to withdraw, then you must clear the pending premiums.

Ashish KumarHi Mr. Basavaraj,

I have completed 5 years of Jeevan saral paying Rs.5104 monthly (i.e. approx Rs. 3,00,000.00 till date) as an installment. I want to surrender this policy due to some financial problem, how much amount would I get as the lic website is showing after completion of 5 years if they surrender they will get 100% of the Maturity Sum Assured. So in that case would I get approx 3,00,000.00.

Thanks

Ashish

Basavaraj TonagattiAshish-Contact the branch for the same. MSA will be reduced to 5 years MSA.

MohsinHello Sir…

I have just completed 5 years of jeevan saral policy.

So far I have paid about 1,53,000 RS for 9 jeevan saral policies (Courtesy LIC agent wrong input) which has different maturity dates but started at the same time in May 2011.

My age is 26 years when the investment started.

Now, I want to surrender all the policies. Can I expect to get the money which I have paid ?

I understand that visiting LIC office would be helpful but I am not in a position to visit office….

Basavaraj TonagattiMohsin-I think you get.

Harsha RHi Mr. Basavaraj,

I have completed 5 years of Jeevan saral paying 9187 Rs quarterly. If i surrender now ,will be losing the premiums paid in the 1st year according to LIC people. There is an option called partial surrender. Can you please throw some light on that.

Thanks

Harsha

Basavaraj TonagattiHarsha-why you want to surrender?

Harsha RDear Basavraj,

1. Would like to liquidate this amount

2. Will be short of money due to some other financial commitments, so will be difficult to pay premiums of this amount.

Thanks in advance

Thanks in advance

Basavaraj TonagattiHarsha-In that case better to surrender it.

DEBARGHA GANGULYHi sir,

I have Jeevan Saral policy policy no #578448787 enrolled in 2011. I want to surrender the plan since I have completed 5 years.The maturity was in 2029 and MSA = 500000/- only.You have stated that surrendering after 5 years will fetch 100% of MSA value. So am I supposed to get 5lac or (500000/14)*5 = 1.78 lacs? I paid 2042 as monthly premium for 5 years so total premimum would be around 1lac 20k.Can you please tell me teh expected range of the surrender value that I am expected to get.

Thanks,

Debargha

Basavaraj TonagattiDebargha-Your MSA will be re-adjusted to 5 years of Jeevan Saral. Based on that they pay. Check with nearest LIC office.

k v raghu kumarsir this is k v Raghu kumar i bought jeevan saral 165 plan in 2009 February,qtly premium 4250. i was paid until 2015 Feb premium. After that i was not paid till now, i have taken loan also amt RS 210000,AND interest RS21000 If i continue this policy i have to pay premiums amount+loan amount+interest.so now i am not able to pay this amount right now , and I asked to LIC officers if I surround the policy how much amount will i get, they told me approximately 26000 plus or minus, up to Feb 2015 i was paid Rs 306250,if surround this policy i will get loss the amount rs 30000 to 40000, what can i do please give your suggestion, now i am not ready to pay premiums and loan amount and intrests

Regards

k v raghu kumar

Basavaraj TonagattiRaghu-If you are not ready to pay the interest, loan amount and premium, then better to surrender it.

prince kumarSir I have jeevan anand policy sum assured of 200000. my EMI is 7668 half early for 15 year, how can I get total maturity amount after 15 year. sir plz advice me.

Basavaraj TonagattiPrince-The returns will be around 5% to 6%.

Avinash KediaDear Sir,

I wanted to know one thing that for jeevan saral it is preferred to surrender after 5 yrs if taken.

I pay premium yearly can you please tell 5 yrs will be considered completed after paying 5 premiums or after paying 5 premiums and completing 60 months as well.

Regards

Avinash Kedia

Basavaraj TonagattiAvinash-After completion of 5th year i.e beginning of 6th year.

ChellaniDear Mr Tonagatti,

In one of the post (dated 22 Jan 2016) you have mentioned that LA would be 500 – 600, based on current trend.

Could you please elaborate?

Regards

RamakrishnaHi Basavaraj Tonagatti,

I took Jeevan saral Plan for 25 years with SA: 5,00,000 and Yearly Premium as 24.020 on 17/09/2013.

Till date i have paid three premium’s. After reading this blog, i realised that i had invested in a wrong plan.

So, please suggest me whether i should surrender this plan now or shall i pay two more premiums?? (to complete 5 years)

How much amount will i get if i surrender the plan now?

How much amount will i get if i surrender the plan after completing five years??

Thanks for your help inadvance..

Basavaraj TonagattiRamakrishna-Better to surrender after 5 years.

ChandruPlease explain.

Why should we surrender for 5 years.

Why not in 3 years.

Basavaraj TonagattiChandru-In this policy, if you surrender after 5 years then it is considered as 5 years policy but not the term you opted earlier. This is the uniqueness. Hence, instead of 3 years, it is best to surrender at 5th year.

SrirajHi Basu,

I have purchased Jeevan Saral in 2010. I’m paying half yearly premium of 15466 INR. My MSA is 1336367 INR. Now the policy is in affect for 6 years. I understand that Jeevan Saral has a SSV for >5 years, which is to pay out 100% of MSA . This MSA is calculated for the time frame for which the policy has been in affect i.e 6 years in my case. I also understand that in case of Jeevan Saral, LA starts from 10th Year onwards. Now I have couple of queries:-

1. If I surrender the Policy on 10th Year completion, would the returns be as calculated below ?

> MSA for 10 year period = 1336367 * 10/35

> LA for 10th year for premium range between 20,000 – 50,000 INR – 375 * MSA for 10 years/1000 = 375 * 1336376 * 10/35 * 1/1000

> Since Policy in affect for > 5 years. As per SSV, MSA Paid out = 100%

> Returns on surrender on 10th Year = MSA + LA

= ( 1336367 * 10/35 ) + ( 375 * 1336367 * 10/35 * 1/1000 )

2. If I opt to not pay any future premiums ( Policy lapsed ), what would be my returns at the end of policy term of 35 years ?

3. What would you recommend, should I hold the policy for its term or should I surrender it right away ?

Basavaraj TonagattiSriraj-How you can say that the MSA will be 10/35th of your Rs.13,36,367? You have to check your age while buying policy, premium you paid and arrive at MSA.

SrirajHi Basavaraj,

Could you please me understand what would be the surrender value of this Policy on its 10th year completion ?. I need to know the below details actually:

1. MSA on surrender

2. Loyalty Addition on surrender ( I know this is not yet declared. Will be declared on 2019 for 2010 policies. But based on the Loyality declared for the last 3 years, Can I assume it to be 375 INR per 1000 MSA ? )

3. Total Surrender Value = MSA on surrender ( MSA calculated for 10 years ) + Loyalty Addition

My next premium payment date is on June 2016. If I have to exit from this Bad investment, I have to do it now. If you can guide on the above and answer my above queries related to calculation, it will be really helpful.

Thanks a million for your help :).

Basavaraj TonagattiSriraj-1) MSA on surrender will be known to you once you visit LIC for surrender.

2) You can. But clear picture or shocking picture emerge when you know the actual surrender of this policy.

3) Yes.

First go ahead and surrender it.

RishirajSir I have purchased the jeevan saral policy with half yearly premium INR 3032 in may 2009. I want to surrender this policy due to some reason. Pls tell me about surrender value. Is it more beneficial to close after 10 yrs?

Basavaraj TonagattiRishiraj-Contact LIC branch.

SrirajHi Basavaraj,

My Age at purchase is 24.

Premium paid per year = 15466 * 2 = ~31000 INR

Basavaraj TonagattiSriraj-Then calculate the MSA based on that.

Vimal GohilHi, Basavaraj

I have purchased the LIC Jeevan Saral in May 2010 through LIC agent. Now 5 years are completed for same. Since that agent had made a purchase of policy for 35 years term, can I close or surrender this policy now ? And, what could be process to do the same.

Let me know so that I can plan for better. Also, I would like to invest for long term in some SIP fashion. What could be the better option ? is it something similar to Tax saving MF.

Basavaraj TonagattiVimal-You can close the policy now. For surrender, you have to visit the servicing LIC branch with you original bond and KYC documents. They help you. You refer my earlier post “Top 10 Best SIP Mutual Funds to invest in India in 2016” and “Top 5 Best ELSS or Tax Saving Mutual Funds to invest in 2016“.

Vimal GohilKYC is mandatory ? actually, I think I didn’t filled it up. Only bond can work ?

Basavaraj TonagattiVimal-Yes, KYC in the sense mainly your bank details to transfer the amount through NEFT.

AnilHi I have invested 36000 in jeevan saral and 6 years are completed.. Could you advise how much I will get as Lic says I will get 29000rs.and also advise do I need to continue the policy or surrender it….

Basavaraj TonagattiAnil-Please read the below around 900 comments patiently. You will get my answer. Because it is repeated many times of what you are asking.

krunal patniPlease I want to know I purchase lics jeevan saral policy for 30 years of 1000 monthly premium on 27 age so what will be return i will get at maturity of policy

Basavaraj TonagattiKrunal-This plan is already closed. You can’t purchase it.

HemanthHi Basu, I was calculating MSA, LA and total amount I might receive.

I have jeeval saral policy which I took at the age of 25, half yearly 6065. Sum assured 250000.

Per my calculations.

MSA: 195310.

LA : (195310 * 250*5)/1000 (*5 because I presume from 10th year with 250 there is gradual increase of 50. So, I rounded it off to 250 for all 5 years from 10th to 15th making it 5 times) = 244137

Total amount is 439447.

Am I correct in calculating the LA? And is the total amount correct?

HemanthBtw, This is for 15 years plan.

Basavaraj TonagattiHemanth-No, I don’t think LA will be that high (considering the current trend). I presume around Rs.500 to Rs.600 for 10 years term.

HemanthThanks for reply.

If we consider the amount to be 500.

LA calculations for Jeevan Saral would be as below:

LA = (MSA *500)/1000 = (195310*500)/1000 = 97655.

Total Amount would then become = 195310+LA = 292965.

Is this correct or am I still missing anything for LA calculations?

Basavaraj TonagattiHemanth-It’s correct. Now calculate the return using my latest post “Video tutor-How to calculate LIC policies maturity amount and returns?“.

SatishDear Sir,

Kindly advise, I took Jeevan saral policy plan 165 in 2011 at the age of 28 yrs.

premium of Rs 6125 quarterly.

tenure 15 years

i have paid premium of 4 years till date if i surrender policy now i am getting around Rs 70,000 (with loss of 30000 & 4 years)

what you will suggest should i continue or surrender policy? what would be the surrender value after paying 5 years premium?

Basavaraj TonagattiSatish-Better to surrender after a year (completion of 5th year). You contact LIC branch regarding the exact values of surrender.

SatishMany thanks Basavaraj.

Yogesh KoshtiI have taken Jeevan Saral Policy 4 yaers packa and my monthy sip is Rs 5000 i.e rs 1000 x 5 poiclies. Let me know wheather its is advisabke to continue this policy, are there sufficent returns as ther sis market rumours that Jeevan saral should not continued as there is case beteween LIC nad IRDA goint on for and less chances of getting assured rtuerns . Please suggest

Basavaraj TonagattiYogesh-Jeevan Saral is already a closed plan. Also, in my view, there is no such case between LIC and IRDA. Regarding your investment, better to close once you complete 5 years.

PPI surrendered my Jeevan Saral policy after paying 5 premiums and completing 5 years.

My Sum Assured was 12,62,500. Thus, the monthly premium was 12,62,500 / 250 = 5,050. Yearly premium was 5,050 * 12 = 60,600 minus 2% discount on annual payment = 59,387.50.

According to LIC’s table (I think no. 165), for someone who was 30 years at the time of buying the policy and paid 5 premiums, the “factor” for calculating Maturity Surrender Value (MSA) for the 5th year was 4,726 per Rs 100 of monthly premium.

Thus, the surrender value was calculated as 5,050 * 4,726 / 100 = 238,663. There would have been a reduction of 3-5 thousand rupees from this if the surrender had happened before completing 5 years.

The Rate of Return on the policy was -7.2%. If I had continued with the policy believing that I’ll get BIG loyalty bonuses, the rate of return would not have been more than 5%, typical with any other LIC policy.

LIC sucks! They have been duping common public for decades, using poor man’s hard earned money for free, making themselves and their agents rich, and returning peanuts to their customers provided they keep paying premium for ages. It’s a pity that majority in this country do not understand RoR and CAGR, which should be the first thing they should teach in schools.

Basavaraj TonagattiPP-It is heartening to hear your story. Hope others understand the reality.

SanjayHello Sir,

Today I went to LIC office and asked about the policy surrender procedure. My policy start of date is 09/2009 and date of maturity is 09/2029. I am paying Rs.2300 every 3 months as premium. When I spoke to the LIC officer they asked me why you are surrendering the policy, you have paid premium regularly for 6 years and now why are you surrendering. They asked to to get loan on the policy. Finally they told till date I have paid premium of Rs.59000 and if I surrender I will be getting only Rs.48000. Then I asked her its mentioned in the policy document like special surrender value will be 100% of MSA if premiums are paid for 5 years or more. They said there is nothing like that and there will be Rs.11000 loss for you. Hearing this I am very clear that they are not even promising what is return on the policy document and I am not sure what amount I will be getting in my hand at the end of the policy completion. I am going to fill the form and going to submit the forms for surrender.

You are really doing a great job here. Thanks for your advice and educating everyone.

KuntalHi Basavaraj,

I must say your online platform provides the best information on LIC policies and especially Jivan Saral policy. Thanks for sharing such valuable information on such important investment topics.

I had purchased Jivan Saral policy 8 years ago when I was aged 30 years. My annual premium is Rs. 60k. I have taken this policy for a period of 35 years. After reading your comments here, I am assuming that this investment will not yield me more than 6-7% returns over a 35 year long period. This is very low compared to the time and the money I am putting in.

I would like to get your advise on whether I should surrender this policy now or wait for the completion of 10 years so that I get some LA.

Your advise will be highly appreciated!

Rgds,

Kuntal

Basavaraj TonagattiKuntal-No great benefit in waiting. Hence, better to act and surrender.

Anup BanerjeeHi,

I have a Jeevan Saral Policy (Table 165) taken in 2012 and will mature in 2037. The sum assured is Rs/-1250000. I pay yearly premium of Rs/-60050. I have paid four premiums so far. My question to you – If I surrender this policy after 5 years, then as per information shared by you in this blog, I will get 100% of the premium amount paid i.e. 3 lacs. Please correct me if I am wrong.

Also, If I wish to continue with this policy till end than what would be the total amount I get? Any other suggestion regarding this [policy would be really helpful.

Basavaraj TonagattiAnup-It is slightly positive or negative at 5th year. If you continue this policy till end, then the return will be around 4% to 5%.

Tejaswini KunteHello Sir,

I bought LIC Jeevan Saral policy on 7th jan 2010 at the age of 25. I am paying 18015 as yearly premium, policy term is 25 and death sum assured is 375000.

I have paid premium till jan 2014 ie for 5 years .

Please advise, should I go for 25 term or surrender the policy now or pay premium for 10 years and then surrender my policy.

what will be my surrender value after 10 years and now and maturity value after 25 years

Thanks in advance.

Basavaraj TonagattiTejaswini-I think we discussed the same in our Facebook chat.

jyotiDear Sir,

Kindly advise, I took Jeevan saral policy plan 165 in 2011 at the age of 24 yrs.

premium of 29000 half yearly

tenure 15 years

i have paid premium of 4 years till date if i surrender policy now i am getting around 175000 (with loss of 57000 & 4 years)

what you will suggest should i continue or surrender policy? what would be the surrender value after paying 5 years premium?

Basavaraj TonagattiJyoti-Better to surrender after 5 years. Regarding values, contact LIC branch.

Anuj AgrawalI started LIC Jeevan Saral Policy 3 years before for a yearly premium of INR 24020.

1. What will be the actual total amount i will receive as per today’s calculation after 35 years? Policy Started at age 26.

2. How can i get out of this Policy immediately or what will be the best time and what will be the charges deducted for same?

Thanks a lot for all your help & valuable information.

Basavaraj TonagattiAnuj-Your both doubts are already answered in below comments many times. Please go through them.

Anuj AgrawalCan you please let me the formula to calculate it? So that i put the values in and calculate expected outcome from this Policy…

Basavaraj TonagattiAnuj-You can use the compound interest formula. You search in Google and found many online sites.

Anuj AgrawalThanks Basavaraj for all your help and replies. i got clarification for my 2nd doubt regarding surrender value. Can you please clarify my first doubt by giving me a rough figure (What will be the actual total amount after 35 years – Policy Started at age 26 & Annual Premium 24,020.), it will be appreciated. Sorry to bugging you again and again.

Basavaraj TonagattiAnuj-Considering the current LA trend, the return may be around 5% to 6%. Not more than that. It’s alright and never think by commenting.

Anuj AgrawalHi Basavaraj,

I am weak in calculating these percentages & opt in for this Policy 🙁 …. that’s why i am asking you that what will the FIGURE (appox.) after calculating? Thanks a ton again.

Basavaraj TonagattiAnuj-Basic Maths is enough to do the calculation. If you still have confusion, then please go through the below comments. You notice my calculation and answers.

AmitSir, what is the income tax implication on surrender value after 5 premium terms?

Basavaraj TonagattiAmit-Please read my earlier post “Tax Benefits of Life Insurance“.

AmitThank sir for your kind reply! Is the surrender value received (after paying more than 2 premium terms for traditional policies), required to mention in our ITR of the respective year?

Basavaraj TonagattiAmit-Read my post about taxation once again.

AbhiHi,

Need your expertise here. I’ve paid 5 premiums till date for Jeevan Saral (24020*5) for a measly 5 lacs sum assured (No riders).

The 6th Premium date is approaching in Jan 2016. What would you advise for this plan – Should one:

1. Just stop paying premiums (Make it Paid up) and wait another 10 years for the money

2. Surrender the Policy immediately and collect whatever is left of it

3. Continue with the policy for another 5 premium terms to look at Loyalty Bonus etc

4. Any other advise on this policy?

Do respond! Thx

Rgds

Basavaraj TonagattiAbhi-Surrender now itself.

vrushaliDear Basavaraj Tonagatti,

Thanks for your detailed explanation of this policy. I am in dilemma now & appreciate if you help me to solve this.

My DOB is -1989,

JEEVAN SARAL Plan details are as follows:

Policy Date: June-2012,

Half yearly premium=18195, TABLE=165, TERM=35 yrs

As I have completed 3 yrs. of my policy. I went to LICBranch to get surrender amount and Surrender value is Rs 61632/-. But till date I have paid total premium 109170/-. And Now if I surrender then I will be in Loss of Rs 47000 Approx.

Please suggest me on following option

1) Should I exit at this stage of 3 yrs & take 47K loss. Invest that 61k money in my home loan which will at least reduce my interest component.

2) As in above post you suggested that exit from this plan after 5yr.

If I surrender this policy after 5yr

a) Will I get complete premium back. At least (181950) my 5 yrs paid premium .

b) Or after 5 yr also I have to bear some loss. (May be you have some rough idea on this)

Your suggestion will help me to take further decision.

Basavaraj TonagattiVrushali-You may not get the full amount of what you paid in case you surrender after 5 years. But the loss will be minor compare to today’s surrender. Hence, I suggest to surrender after 5 years.

SamHi Sir,

I have taken Jeevan Saral policy in 2011 for 16 years with a premium 48040/Year.

My age was 31 years when i enrolled for it, agent has given bond of worth 10 Lac.

It would be great if you explain or guide me where to invest

Please let me know what would be my meturity amount after 16 years?

What is SA for my policy?

How much LA I can get after 10 & during 16th year?

Shall i continue with the policy?

With Regards,

Sam

Basavaraj TonagattiSam-Your all doubts are explained in above post and below comments. Please go through them.

unmesh bagweHi Basu,

I am a regular visitor of your site and find your blog very helpful.

my question is around Jeevan Saral – i have been paying the premium for 7 years and surrendering this policy as it does not suite my needs.

Question : my premium is due next month so do you think i should be paying the pending premium and then surrender to surrender directly ? if you could shed some light in this matter.. a big thanks in advance for your answer.

Basavaraj TonagattiUnmesh-Better to surrender before paying premium.

unmesh bagwethanks basu.

as you suggested i will surrender the policy without paying the pending premium but do you think it will cause any trouble or inconvenience if i surrender the policy when the premium paying date is passed ?

Basavaraj TonagattiUnmesh-I don’t think so.

HareshI have seven years of my LIC Jeevan Saral Policy.

If I will surrender the same now, Shall I get my total premiums paid back or not ?

If yes then shall I get any sort of additional amount ?

Basavaraj TonagattiHaresh-Please contact LIC branch.

DiwakaranHi,

I have taken Jeevan Saral on 2013. Two years paid. But when i look at your blog, i am surprised to see that i was cheated.

My premium details are,

10,000 – per month.

for 35 years.

DOB : 31/07/1984

Please tell me how much i will get it. Will it be good to withdraw after 5 years?

Thanks,

Mahalakshmi

Basavaraj TonagattiDiwakaran-I will not repeat once again, but you might know my answer 🙂

DeepuVery informative article…

Hi Baswa,

Below are my details

DOB 9 july 1982

premium 9187 quarterly

policy term 20 years

started 24/5/2013

Sum assured 750000

Please help me in finding out total return after 20 years and also what would i get if i surrender in 5 years

Thanks in advance !

Basavaraj TonagattiDeepu-Go through the above post and older comments. You will get my answer. However, returns will be around 5%.

DeepuThanks Basu,

I had no interest before reading your blog and not even know the basic of investment but after reading your blog and some interesting question i did some google and found that if i invest 3000 per month in PF I will get near about 1942961 in 20 years (interest rate appx 8.7%), which would be far better then LIC.

Do you agree to this?

The only difference would be that I am not insured with PF but with LIC.

any advise you want to share?

Basavaraj TonagattiDeepu-I agree. But do you feel the Jeevan Saral insurance coverage is actually fulfills your insurance need? You be underinsured by buying such products.

DeepuNo, I dont think that jeevan saral will fulfill the insurance need so I am planning to cancel this and will go for term insurance rather

But again can you give me a rough idea how much will i get if i cancel today (3 years) offcourse i will call LIC as well but thought to check with you as well

hope you wont mid

Basavaraj TonagattiDeepu-No idea.

BHARAT HEMNANIHi,

Have you completed the chart for surrendering.

Regards

bharat

Basavaraj TonagattiBharat-It is not required as the plan itself stopped and you can get the information about surrender in your phone itself.

BikashHi,

Have you completed the chart for surrendering.

Regards

Bikash

Wasimi have a jeevan saral ….premium of 1,40,000 per annum…….i have completed 3 years….when should i terminate to get the whole premium amount back without any interest….or when should i terminate to suffer least loss in premiums….thanks in advance…

Basavaraj TonagattiWasim-Best to complete 5 years.

ChandanSir,

For example, we paid Rs. 60,000/- in 5 years under Jeevan Saral Plan,

and we surrender the policy after completion of 5 years, then what amount we get ??

we get paid amount with interest or without interest ??

Also, what will be rate of interest ?

Thanks

Basavaraj TonagattiChandan-Better you contact the LIC Branch.

ChandanI knew

Thanks

C.P.Dear Basavaraj/ Admin

Greetings!!

Today morning I posted my query on your site and it was displayed but later on it deleted by you people but again I am writing to you.

I took Jeevan saral plan (165) on 15-10-2010, that time my age was 19th Years. I pay quarterly payment Rs. 3062/-, and sum assured is 2,50,000/- , Term – 12 years.

Now I am planing to surrender it on 20th Oct-2015 due to some personal reasons.

So please tell me what amount I will get after completion of 5 years, also tell me what rate of interest will be provided to me.

Moreover, if I complete this plan till 12th years what amount I will get ??

Your prompt revert on same will be highly appreciated.

Regards

Basavaraj TonagattiC.P-It was not deleted but need admin approval if you are commenting first time. Once admin approve it then only it is visible. You have to visit LIC office or use the facility they provided like “Check LIC Policy status without registration by Mobile Phone or SMS” to know the values.

C.P.I am unable to know my query answer

So please give me brief idea what amount I will get after completion of 5 years

Basavaraj TonagattiC.P-It will be around 4%.

C.P.Hello Sir,

I contacted LIC Branch and came to know that Maturity Value is Rs.50169/- even I paid Rs.64302/- to lic in 21 premium of Rs.3062/- quarterly

so its cleared, we will not get 100% amount even after completion of 5 years

Basavaraj TonagattiCP-True and that is the reality of traditional plans.

C.P.Hello Sir,

Can you please confirm which form I have to fill for policy surrender

Should I fill form No 5074 ?

Or form no 3510 ?

Or any other form ?

Please confirm asap bcoz I have to send these documents out of station

Note- My policy is not completed

Basavaraj TonagattiC.P.-Both are one and same (I am not sure why they put two numbers).

C.P.3062 quarterly for 5 years = 61240

I will get more than 61240+ interest = ??

or less amount ??

sharad dabirDear Mr. Basu,

I have taken jeevan saral policy in 2011 when my age was 60 yr.Annual prem.is Rs.60050.Till today I have paid 4 instalments. Term of the policy is for 10 years. The maturity sum assured is 152950.Tell me how much amount I can get on maturity assuming the current rate of LA.If I decide to surrender the policy , how much will i get now ?

S.T.Dabir, Aurangabad

Basavaraj TonagattiSharad-My answer is already available in above post and below comments. Returns will be around 5% to 6%.

Sharad DabirDear Basav,

My confusion is regarding the LA payable for a 10 year term policy. It is mentioned in the scheme that LA will be paid only on complition of minimum 10 years. In that sense, the maturity amount in my case will be – Rs. 152950 (MSA) ) +Rs.45900( LA at the present rate of Rs. 300). = Rs.1198850/-. Is this correct ?

Sharad DabirCorrection in the last line. The amount is.Rs.198850 instead of 1198850

S.T.Dabir

Basavaraj TonagattiSharad-Yes.

satishHi Basu,

Some correction is required in your information.

I have surrendered my jeevan saral policy after 5 years and i haven’t received 100% of my premiums. I received Rs 36,000 lower then my premiums paid during 5 years of tenure. But you have mentioned that if surrendered after 5 years then we will receive 100% premiums.

Please let me know if you need any clarifications.

Though you have made your disclaimer statement clear but as a responsible blogging person we should be very careful in publishing financial related info on web on which people are going to take decisions.

thanks

Satish

Basavaraj TonagattiSatish-What I said is, LIC consider your policy as 5-year tenure policy. Accordingly they adjust the MSA for 5 years period+LA. If such adjustment is less than of what you paid then it is an eyewash which LIC created stating that this policy is highly liquid.

BIPINKUMAR SINGHHi Basavaraj,

I had two policies of jeevan saral for the term of 35 Years as mentioned below:-

Enrollment Date Prm Amt[Monthly] Maturity Amt

28-02-2012 [2,042.00] 5,00,000

14-01-2014 [4,083.00] 10,00,000

Can you tell me the surrender value and paid up value for both policy? AND

what you will suggest to do should I surrender or should i do the paid up for both the policy?

Basavaraj TonagattiBipinkumar-Please contact nearest LIC branch for surrender or paid up values. First check the values then decide. You can’t do both the things unless your policy completes 3 years.

BIPINKUMAR SINGHthanks for the reply.:)

KannanDear Sir,

Kannan here, I have taken Jeevan saral (165) policy through an agent in April 2009. The Policy details are as follows:-

Jeevan Saral (165) Policy Term – 21 years

Date of commencement: 09/04/2009

My Age at the time of policy: 30 yrs

Premium – Rs. 7656 / quarter

Maturity Sum Assured – Rs 7,24,375

Accident Benefit sum assured- Rs 6,25,000

Term rider Sum Assured – Rs. 6,25,000

Policy Maturity Date: 09/04/2030

My question is

1) The Agent showed me Jeevan Saral ATM Plan chart(Table no 165) that I would get 20 lakhs at the end of 21 yrs after taking a premium of Rs. 7656 / quarter. Will I get 20 lakhs (as per table no 165) at the end of 21yrs?

2) If no, then how much i will get actually at the end of 21 yrs?

Regards,

K. Kannan

Basavaraj TonagattiKannan-Even if you consider Rs.20 lakh as a return then too the return on investment will be around 4.89%. So waiting for such long 30 years and expecting around 5% return is worth?

KannanThank you for your quick response…

Please let me know that could I get 20 lacs (as per table 165) at the end of 21yrs?

Basavaraj TonagattiKannan-What I am pointing is, Rs.21 lakh you may get it. But this return is suffice and at what cost you are getting? Think seriously.

KannanSir,

As per policy I need to pay premium Rs 7656 per quarter for complete policy term 21 yrs. So as a whole I could have paid around 6.5lacs (Rs 7656 * 4 * 21=Rs 6,43,104 ) at the end of 21 yrs. As per table 165, LIC will give me lumpsum of 20lacs alongwith loyalty addition after maturity period 21yrs). So I hope it is a good return. Please correct me if I am wrong.

KannanAwaiting for your response

Basavaraj TonagattiKannan-I assumed wrongly that the term of policy is 30 years. Now according to your agent, the return on this investment will be 10%. This is totally impossible from this policy. Considering the expenses involved in traditional plans and the nature of investment LIC do by this amount, it is hard to expect around 5%. Rest is left with you to decide.

KannanThank you

subhashDear Admin and all user,

I want to share my feeling here-

I took Jeevan Saral policy in 2008 for a premium of Rs.20417 annually (my age was 24 years ).During taking the policy my agent show me a detailed chart which show multiple benefit and too much return. I observed that no agent is showing actual table to customer and formula for calculation of maturity amount. Thanks to Basavraj .

During that time I was only 24 years old and very much eager to take a pension insurance plan for my better future. I am a common man and was not aware about common insurance fraud.

Please note that LIC agent will tell you only high premium plan so that they can get good commission and Jeevan Saral is the best example. We are indian and believe on everybody very easily. We believe in LIC as our parents teach us that LIC is very good.

After taking this policy I learned many things and invested in other area like Equity, mutual fund, Recurring, FD etc and I want to share my knowledge for you.

1. Insurance- insurance should be used only for covering risk not for investment but most of us try to invest our money in insurance. ULIP is a great example for that. From my past mistake I learned that everybody should take only pure insurance without any maturity

for eg: Pradhanmantri Suraksha Bima Yozna of Rs.12 premium- it is the best example for pure insurance without maturity but only for accidental insurance

Ask your agent to show life insurance plan without any maturity. Believe me he will try to misguide you because in that case premium amount will be minimum

for eg: if you want a risk cover of Rs.500000 in case of death then you have to pay only 1400 annualy ( if your age is 24 years) so safe your family by taking pure insurance plan

Now come to second option-

2. Investment- you can invest your money in various option as per your wish but i will suggest you to invest in many option rather than in one bucket.

a. Gold

B. Property- Highest Safe Investment and best value

C. Equity Share Market- only for some Tech savy person

D. Mutual Fund- Medium risk and ladder for new investor. Personally I took ELSS mutual fund for 3 years locking period and believe me I got my money double ( may be i choose best fund or luck) and since then I am investing money every year + tax benefit

E.Kisaan Vikas Patra- we are used to it. we should invest our some % in it.

F. PPF- good for safe side and secure future

G. Local BC or Patti or Kitty- Best for businessman

H. Recurring- Its very easy( if did online) and suggest that every person invest their bank saving in it. You can withdraw anytime.

Question to Admin- Sir, I am feeling that I stuck due to investment in Jeevan Saral plan. I started with Rs.20417 in 2008 for 35 years term plan and now i want to surrender but i want some return. Through your table i calculate that i will get around 950000 without loyalty which is worst return as per me so please tell me that my calculation is right or wrong and for some return in which years I should surrender the policy.

Second Question- For securing my future I want to take a pension plan but I don’t have proper knowledge so guide me after surrender this policy which pension plan I should choose.

Third Question- I started my business recently (I worked in various MNC for last 10 years) for which I want to establish a taxation system. I read many books for taxation but got confused and need your help. For this support I can pay your fee.

My email id [email protected].

Please revert.

Best Regards,

Subhash

Basavaraj TonagattiSubhash-I respect your sharing and concerns. However, I have different opinion about investments like Gold, Property, Equity (this is not at all meant for tech savvy, in fact, it is bet for those who understand the concept of equity) and for local BC. Now regarding your doubts,

1) Your policy already completed 5 years. Hence, visit LIC branch and ask for closure value. Then decide whether it is worth to continue or stop.

2) As of now there is no such pension product, which you may say BEST. You have to accumulate on your own.

3) Sorry, I am not an expert in that matter. I can only handle the personal finance tax but not business or corporate.

ANUP PATELI have LIC jivan saral policy with premium of 6065 HLY since July 2008.

1. If i surrender this policy than what amount of money i get ?

2. if i surrender after 10 years than what amount of money i get ?

MY MSA is 534990

MY TERM is 35

Basavaraj TonagattiAnup-Contact LIC branch.

Abhishek SaxenaThanks Basu, I can and will contact LIC nearest Branch.. but what’s the use of this blog then?

Basavaraj TonagattiAbhishek-I am not here to let all readers to know about the surrender or paid-up values. This is meant to understand you about how it works. Also, if you are so smart to ask me of WHAT IS THE USE OF THIS BLOG, then I feel it is a pity of you. This blog is meant for making you to understand how these schemes work. You already committed one mistake of investing without knowing whether it suited to you or not. Nothing comes easily and the same applies to your investment and knowledge.

Abhishek SaxenaThanks Mr Basu.. as far as my knowledge is concerned..it doesn’t need your scale for rating..Instead of reading your blog, people can go to website, article & their policies.. but if you see most of the comments are asking for your help on MSA.. you should know how to solve it..put a excel which gives indicative , it’s still fine..

I have answer to your offending comments, but I would rather end the discussion with a note that I have got details I was looking for PERIOD

Basavaraj TonagattiAbhishek-I wrote all information in a simple way. But I can’t spoon feed all. If I do so then what is the difference between me and the agent with whom you bought LIC policy?

Abhishek SaxenaHi,

I have a Jeevan Saral Policy, premium 9188/- quarterly. Till now I have paid 13 premiums i.e. 3 yrs + 1 quarter.

If I now surrender the policy, what would be the surrender value?

Thanks

Abhishek

Basavaraj TonagattiAbhishek-Contact nearest LIC branch.

Akarsh KumarHi Sir,

Found your blog very useful. Thanks for the really informative post.

I need a small clarification here. I have a

Jeevan Saralpolicy since 2010. I have been paying Rs.1000/month and now it’s been 5 years and the total premium paid is Rs.60,000. So what is the amount that I will get back if I surrender now? Thespecial surrender valuesays, if 5 years’ premium has been paid then 100% of Maturity sum will be assured to us. Butguaranteed surrender valueis 30% of the total premium paid excluding 1st year’s premium. Which one of these do I get? And how to avail the Special surrender plan? Please help me out with this.Thanks

Basavaraj TonagattiAkrash-Whichever is higher.

prashantI have started my policy on September 2011 my premium is of 35280 per year I have paid 4 installment. My policy is jeevan saral with profit . how much I will get if I surrender this policy now.

Or if I surrender after 5th installment how much I will get ?

Basavaraj TonagattiPrashant-Please contact the nearest LIC Branch for surrender value.

Rajesh PrabhakarSir, Is there any website where we can calculate the maturity amount of different policies?

Basavaraj TonagattiRajesh-Sadly no such website available. But by the above method, you can calculate yourself easily.

AmbicaPlease let me know any plan related to Jeevan Saral benefits

Basavaraj TonagattiAmbica-As of now no such plans.

Praveen KumarI purchased a Jeevan Saral Policy in Feb. 2009 and have paid instalments for six years. My quarterly instalment is Rs. 9800/-. Now I want to surrender this policy. How much amount I will get 0ut of it. I have paid for six years as follows:

9800X24= 235200

Whether I will get some interest on it or not? Kindly help me.

Basavaraj TonagattiPraveen-Visit nearest LIC branch.

sumit sauravHello Sir ,

My name is Sumit , I am having a jeevan saral policy taken in 2011 @ the age of 24 . The premium amount is 48000 yearly & policy period is 35 years .I come to know after so many blogs that i did a mistake of taking this policy . I have paid premium for 4 years & would like to quit after paying the 5th year premium . Can you please let me know the amount i will get aftr completion of 5th premium under special surrender ?? Please advise . Also please let me now the value after completing ten years of premium . Will get loyalty bonus add on ??

Basavaraj TonagattiSumit-Please go through below comments.

pradeep singhi am paying 1500 pm for 15 years and my plan is Jeevan Saral… please calculate the maturity amount and send me the same in my email.

Basavaraj TonagattiPradeep-Take the pain and read post and comments 🙂

Sameerhi sir,

please upload the Sum assured chart for LIC jeevan saral policy.

Regards,

Sameer

Basavaraj TonagattiSameer-It’s already closed plan. Why you need it now?

vipul joshiHello Sir,

i have bought Jeevan saral in 2011 and paying premium of Rs.30025/- since then. Its for 35 years. I took it when i was 25 years old. I am still confused what i will be getting after 35 years. Policy date of maturity is in 2046. Sorry for the confusion but i am not good in this type of calculations and lot of confusion about the sum assured and maturity sum etc…

Also let me know how you calculate so I can plan and calculate in future accordingly.

moreover can we take same policy twice or increase premium in between?

Thank you sir

Basavaraj TonagattiVipul-Procedure is already explained above. Please go through it.

priyankahi

thanks for sharing valuable information.

my husband brought a LIC Jeevan Saral Policy (Table 165) for 18 years at the age of 33yr in 2010 , qtly premium 15312. Policy sum assured value 12,50,000/-. Please let me know my total maturity value.

Basavaraj TonagattiPriyanka-If you want to surrender within 10 years then it may be less than your savings account interest.

CalvinWhy so much partiality. For the guys questions you just told them to read the article and for the girl you answered her question. 🙂

Basavaraj TonagattiCalvin-Is it? I have not done any such partiality. Initially I tried to reply with their unique quaries. But if the same quaries started to repeat then I requested readers to follow the earlier comments. For me no differentiation of gender.

RamaniDear Sir..

Its wonderful the way u explained the calculations. I will be extremely grateful to you if you could tell me the exact surrender value. I am investing Rs 3000/- month in Jeevan saral for 15 years term starting in March 2011. If I surrender after completing 5 years of premium paid ( i.e in April 2016) what amount I should assume to get ? Pls help. My maturity sum assured is Rs 750000/-

Basavaraj TonagattiRamani-Exact surrender value will be available with LIC. So better to contact them.

Nitin MasayeDear Sir,

I took Jeevan Saral for my Wife on 12-Dec-2011 for 35 yrs term and my annual premium was 12000/.

As one of my friend told that the Maturity Sum assured is not that great in this policy.

So Please guide whether to continue with this policy or surrender it after 5 yrs.

Thanks in advance.

Basavaraj TonagattiNitin-Yes your friend is right. If your expectation is more than 6% then better to surrender.

sharaddear sir

i have bought jeevan saral before 5 years back

monthly premium is 1000

how much money i should get after 25 years

Pritish ParilHi,

I had taken Jeevan Saral policy in combination with Jeevan Anand in 2013 at the age of 26 for a term of 30 yrs. I pay monthly premium of Rs. 1125 towards Jeevan Anand and Rs. 1021 towards Jeevan Saral. Please suggest me whether I should surrender Jeevan Saral after lock-in period of 3 yrs ends. My mother also pays Rs. 360000 as annual premium for Jeevan Saral.

Also the premium schedule chart provided by my advisor shows return of 1416000 after 30 yrs from Jeevan Anand policy. Is it true ?

Basavaraj TonagattiPritish-Better to surrender after 5th year. What bonus he considered to arrive at that final amount?

ChitraHello Sir,

My husband has opted for LIC Saral Policy (165) in 2010 at the age of 21. Sum assured-300000, premium-3675 quarterly, Term- 30 years. Location-Pune, Maharashtra.

What would be the amount we will receive after maturity of the policy?

Thanks,

Chitra

ChandraDear Sir

Based on your comments, it seems it is advisable to exit this plan after 5 years. I have paid 3 premiums so far. Should I stop paying premiums and surrender after 5 years or pay 2 more premiums and then exit?

Thank you so much in guiding laymen with this forum.

Regards

Chandra

Basavaraj TonagattiChandra-First check with LIC branch how much you get if you stop now or pay for next three years. Then based on that take your decision.

kutubSir I have a jeevan saral plan

30yrs term

Taken at age 26

Premium paid for 6yrs(rs.1940 monthly)

If I surrender now I will get 100000/-

If surrender after 10yrs will I get rs.400000/-

Is my above calculation true

Sir please help

Basavaraj TonagattiKutub-Why can’t confirm the same from LIC branch? Because both calculations are exaggerated.

ROHIT HANDADEAR SIR,

I HAVE BROUGHT THE PRODUCT OF LIC “JEEVAN SARAL” AT DECEMBER-2013 OF RS. 11, 25,000/- FOR 26 YEARS TERMS & YEARLY PREIMUM PAID OF RS. 54045/- ONLY.

SIR MY QUERY IS THAT IF I HAVE TO COMPLETELY SURRENDER THE POLICY AFTER NEXT FIVE YEARS, SO WHAT I WILL GET ON PRE-MARUITY VALUE,

OR IF I WILL HAVE TO GO AHEAD AFTER NEXT FORTHCOMING ELEVEN YEARS, SO WHAT I WILL GET ON SURRENDER VALUE. IT WILL BE ALSO PAYABLE L.A. OR NOT.

KINDLY HELP ME AT THIS MATTER. I AM VERY GRATEFUL TO YOU.

Basavaraj TonagattiRohit-Better you contact LIC branch to know the values of period you mentioned. How can I say those values?

raju banerjeeSir I want to purchase a land worth Rs 12 lacs. as an investment I had given an advance Worth Rs 5 lacs the registration will be on coming March 15. But sir I have a shortage of Rs 3.5 lacs. sir i am a self employed person running my own computer business and i am an income tax payer. am i eligible for a loan for land purchase. except the advanced deed i Had nothing to give as a security to bank.

actually i am from west bengal and the property(land) which i want to purchase is in the state of Bihar just 2 hours from my location. if i am eligible, from where do i apply a loan from my nearest Branch? or in the Branch where I want to purchase the land ?

Basavaraj TonagattiRaju-Please contact the branches where your land is located.

RamprabhuI got Jeevan Saral Policy two years before.

My yearly premium is Rs.31,826. ANd the Sum Assured is Rs.6,62,500/-

I just paid two Premium. I am yet to pay premium for this year (Dec 14).

By reading all above comments, I have decided better to quit the policy at this stage and buy some Term Insurance (Jeevan Amulya).

Just wanted your advice. Is it better to quit now or after 5 years?

Please help.

-Ram

Basavaraj TonagattiRamprabhu-It is better to continue if your are satisfied with return I quoted in below comments. Otherwise discontinue immediately after 5 years why to buy offline term insurance of Jeevan Amulya, when LIC offering cheaper online term plan?

Rajinikanth ReddyHi Basavaraj Tonagatti,

Excellent comments / reply by you sir,

Keep it,

Thanks,

Rajinikanth Reddy.

Deepakhi Basavaraj,

i have jeeval saral 165 policy my quarterly premium RS 6431

can u explain before 20 year how much my maturity amount .

Basavaraj TonagattiDeepak-You go through the above review and below comments. You get my answer easily 🙂

Ajay KolambeBasav for this plan I want more clarity

I have saral plan for 30 Years with 30K yearly prem, 7 year completed, MSA is 162262

LIC office told mi surrender value 159355 for today

Accroding to the product note if I continue till 10th year my surrender value should be MSA i.e. 162262 but my agent told mi that u continue till 10th you will receive the bounus + 100% of value paid that is 3 lacs + bonus aprox comes to 3.75 lacs

pls suggest what will be surrender value after 10th year,I got for after 7th year

in this situation what should I do

pls note that I don’t want to continue this till 30 years

Basavaraj TonagattiAjay-Don’t do so much research. Calculate yourself the amount you pay for 10 years then consider the current LA for for 10 year term. You get answer, i.e return of 4% !!!

Abhishek RHello,

I have been following your Blog Posts for some time now and find them very informative. I had a Query regarding my Jeevan Saral Policy. I was also one of many people who got lured by a LIC Agent and got trapped in this Policy.

I had taken this Policy in 2008 and it has completed 6 Yrs. now and now i want to surrender it. I got to know from LIC Customer Care that i will be getting around 1.75 L and my Premium Paid till now is 2.18 L.

With a heavy heart, i am ready to bear the Loss.

However, most important thing i want to know is whether i will lose the Tax Exemptions that i have claimed by showing the LIC Premiums as Investment under 80C ? Do i need to repay all the Amount that i have claimed under 80C for 6 Yrs.?

Awaiting your response.

Thank you.

Abhishek RForgot to add that i also seem to have misplaced the original Policy Document. Do i need to apply for a Duplicate Policy Document before surrendering it ?

Basavaraj TonagattiAbhishek-Please go through the tax benefits of Life Insurance by visiting my earlier post “Tax Benefits of Life Insurance“.

Abhishek RAfter going through the above link, i can conclude that I do not need to repay back the amount I have got exempted till now under 80c. Kindly confirm.

Also, plz let me know if I need to obtain the duplicate policy before surrendering, as I seem to have misplaced my original policy document.

Thank you.

Basavaraj TonagattiAbhishek-If you understood the Sec.80C reversal rules then go ahead as suggested. Yes for surrendering you need to apply for duplicate bond.

HarshHi Sir,

I have Started my LIC Jeevan Saral Policy on 09-Dec-2009,

I am paying a premium f 24020 yearly.

My DOB is 16-08-1986.

Please let me know what is the amount that i will get back once i surrender the policy in Dec 2014, i.e. after completion of 5 years.

Thanks,

Harsh

Basavaraj TonagattiHarsh-Only GOD knows, because even LIC officials are not aware of this 🙂

harshThanks For the Reply Sir.

It would be great if you can tell me that Will the Amount be at least equal to the premium paid by me i.e. 120,000 or less than that ?

Thanks,

Harsh

Basavaraj TonagattiHarsh-Contact LIC branch for the same.

LaxmikantDear basavraj

My dob- 25/12/84 and my jeevan saral plan details are as follows

Policy date- 21/03/2011

Quarterly premium- 15312

Table-165, term- 20 yrs

Sir, how much will I get after completion of 10 yrs and 20 yrs

Thanks in advance

LaxmikantAnd one more thing sir do we get MSA+LA after completion of 5 yrs

Basavaraj TonagattiLaxmikant-Please go through below comments. You will find my answer 🙂

AshishDear Sir,

How much do you expect the Loyalty addition to rise as as of now based on bonus 2014-15 its 475 for 13 years with highest premium paid slab.

This question is to understand if i am staying invested and say redeeming it at 25 years (instead of 13 years for which the calculation of 475 is given) how much this LA would be ?

Basavaraj TonagattiAshish-Even if one exaggerate the values then too return from this policy will be around 5% to 6%.

VikasHi

I purchased Jeevan Saral plan with yearly payment of 30025/- for 35 Years. Policy started in 12/2008. As per the comments it does not look a policy with good returns.

1)Can you please advise me that do we have better LIC policy than Jeevan Saral?? If yes, should i go for surrender the policy and take that one.

2) If not LIC can you suggest me any good investment tool with can give the approx. 10% guaranteed returns with the investment of 2500-3000/- per month.

Regards,

Vikas Singla

rajeev singhDear sir,

I have purchased quaterly premium of lic jivan saral plan for 21 year with value 4594 per quaterly basis i have paid 5 year .i wants to surrender plz confirm the return amount

Basavaraj TonagattiRajeev-Please go through below comments. You will find my answer so many times.

saumilI am paying 25000 Rs yearly premium since last 10 years of jeevan saral policy. Already 11 premium paid. I want to surrender my policy next year..Heard 260% loyality addition declared.What will be my surrender value next year.

kindly help.

Basavaraj TonagattiSaumil-Please confirm the source of 260% of LA first, then we discuss further.

saumilI got information from my LIC agent. He checked with LIC Branch.

RameshHi,

I bought this policy on 2008 and paid my 7th installment(210000).Recently i am in need of money and wanted to surrender.surrender office said i can only get 1,65000.

If i continue till 11th year i may get good returns(3-5%).

ridiculous!!!!

Beware these agents..they may say 100 rupees each year after 20 year you will get 2100 + expensive accidental insurance.

Regards,

cs dubeySir,

I have taken jeevan saral policy when I was 20 yrs old and paid Rs. 4083 monthly premiuma for 25 yrs. Policy completed 5 yrs I dn’t understand what should have to do ? Surrender or continue. If surrender then what amount wlii be get.

Basavaraj TonagattiDubey-If you feel return of around 6% is good for that 25 years of investment then continue. Otherwise surrender it. For values better to contact LIC branch.

aniruddhaHello Sir,

I read your post completely. I am very bad at math. I will be very much glad if you help me with the figures.

I got LIC jeevan saral policy.

I pay 3000/month

on my LIC doc it shows 1589790 as mat sum assured and 2048 as last date

i can not hold for that long

how much will i get after 5 yrs and 10 yrs (lump sump) including all the benefits.

I have lost the faith in this policy.

How do you consider this policy.

I have just started earning can you suggest me better approaches of investment to get good benefits.

I am very new to all these.

Also can I get loan on jeevan saral if so how much?

aniruddhaHi

My understanding from your article is I will get 80% of premium paid after 3 years i.e. 80% x (3x72K) = 1.72 Lacs.

And if I hold it for 5 years surrender value will be 100% of premium paid i.e. 5x72K i.e. Rs 3.6 Lacs.

If I consider my example here

3*60 = 180

but after 10 yrs some of the charts on the internet shows

3*120= 360 (something around 6 lacks i shown)

How is that calculated?

Also If My term is 35 yrs.

Will I get near around 6 lacks after 10 yrs?

Basavaraj TonagattiAnirudha-It is not a rocket science to understand these basic things. Try to understand yourself and take control of your money. Otherwise one more agent will come and sell you one more bad products. After all it is your money. So take care by learning basics.

Pranav ThakurSee what I understood is, if I have 10,00,000 INR sum assured at maturity and if term is for 35 years with yearly premium of >50000 if we assume rate of 425 INR for 35 years per 1000 rupees of sum assured then loyalty addition will be

(10,00,000/1000)*425*35=1,48,75000 INR

Am I right?

Basavaraj TonagattiPranav-Totally wrong. Because LA is not an yearly payout. So multiplying it by 35 is wrong. Do it without multiplying with period of policy i.e 35 Yrs.

AchinHi Basavaraj,

I have Jeevan Saral with 72k/year premium paid half yearly. I have already paid 6 premiums i.e. for 3 years. please suggest what is the best time to surrender the policy.

My understanding from your article is I will get 80% of premium paid after 3 years i.e. 80% x (3x72K) = 1.72 Lacs.

And if I hold it for 5 years surrender value will be 100% of premium paid i.e. 5x72K i.e. Rs 3.6 Lacs.

Please check if this is right?

Basavaraj TonagattiAchin-Yes true.

PariHi,

I have two different policies from LIC – Jeevan Tarang and Saral.

Have question regarding Saral. As per my LIC bond, sum assured is rs.5 lakh and for 21 years. I bought this LIC on 23.09.2009 hence this September (2014), 5 years completed for this policy. I am paying quarterly Rs. 6125 premium. Now, my query is, if I surrender my policy now(after 5 years), what would be my SA? I have this question because in this forum page you said have explained about DAB.

Thank you

Pari

Basavaraj TonagattiPari-Please read complete description. In this policy SA is different and MSA is different. Once you go for closure after 5th year then this MSA is reduced to 5 years policy period and accordingly you receive benefits.

Manish GautamVery useful article. Thank you Basavarajji.

Jaydevcan you please let me know then formula ( logic) for calculate MSA ? I am also frustrate with jeevan saral plan and paying 42000 yearly. Now I am planning to come out from this plan so if you have formula/function for calculate MSA then please provide me. Thanks

Basavaraj TonagattiJaydev-No need to scratch your head. MSA will be available on your bond document. Suggest you to recheck it.

atulinvest in LIC is foolness. instead go for mutual fund, SIP.

Basavaraj TonagattiAtul-Thanks for your views.

Ajay KolambeJindagi sath bhi nahi chahiye

bad bhi nahi chahiye.

All products are bakwas including term plan of LIC.

What is the life ecpectancy calculation of LIC acturies I didnt understood.

Puri loot machake rakhi hai

LIC ko jano mere yaro….

SudhirHi,

As per LIC site, i am not able to understand how they are calculating the scenario I (6%)and II (10%) amount.

https://www.licindia.in/special_plan_001_illustration.htm

can you please help me in understanding this?

Thanks,

Sudhir