Harness the power of our surrender value calculator

In the dynamic landscape of personal finance, making informed decisions about your insurance policies is crucial for realizing any long-term financial goals. As policyholders, understanding the ins and outs of your insurance plans empowers you to make choices that align with your evolving needs. One powerful tool that allows you to take control of your policies is our Mera Kal Surrender Value Calculator. Developed by our in-house financial analysts, we aspire to empower you in order to make the most of your financial assets.


Firstly, what is the surrender value and what is its relevance?


The Surrender Value of an insurance policy is the amount that the policyholders, you all, are entitled to receive if you choose to terminate or surrender the policy before its maturity date. The Surrender Value is determined by various factors, including the type of the policy, premium amount paid, the duration for which the policy has been active, the term of the policy, the bonus accrued and the specific terms and conditions of the insurance policy.


How our calculator works


Our surrender value calculator operates using the Surrender Value Factor, which can be found in the table at the end of every policy document. The Surrender Value Factor determines the Surrender Value.

Estimated Surrender Value = Premium paid yearly x Number of years since the policy started x  Surrender Value Factor

Estimated Surrender Value = Rs. 20,000 x 10 x 55.29%

Estimated Surrender Value = Rs. 2,00,000 x 55.29%

Estimated Surrender Value = Rs. 1,10,580


A quick disclaimer, this is an estimate that assumes timely payment of all premiums and does not incorporate any accrued bonuses applicable to your policy. The actual Surrender Value may vary based on these factors. For an accurate assessment of the Surrender Value of your LIC policy, including any accrued bonuses, please reach out to us directly.



Unlocking Financial Power: Leveraging Surrender Value for Loans Against Your LIC Policy


Life Insurance Corporation (LIC) policies are not just a shield against life's uncertainties; they can also be a source of financial assistance through loans against the policy's surrender value. The surrender value is a crucial element that policyholders can capitalize on to secure a loan. IRDAI data shows that by month 61, only 49% of policies are still active which means that half the policy holders are losing money by letting it lapse! Instead, you could leverage your policy to build your wealth, credit, or to attain liquidity. Let's delve into how your surrender value can serve as a gateway to obtaining a loan against your LIC policy.


Understanding Surrender Values:


The surrender value of an LIC policy represents the amount available to the policyholder upon surrendering the policy before its maturity date. This value is determined by various factors, including the policy's duration, premium payments made, and the type of policy. Essentially, it is the cash value of the policy that policyholders can access during the policy term.


How Surrender Value Facilitates Loans with Mera Kal:


Basis for Secured Loans:

Loans against LIC policies are secured loans, with the surrender value acting as collateral. Since the surrender value is essentially the accumulated value within the policy, it serves as a security cushion for the lender, reducing the risk associated with the loan.


Loan Amount Determination:

The loan amount that can be availed is typically a percentage of the surrender value. Lenders may offer loans ranging from 85% to 90% of the surrender value, ensuring that policyholders can access a substantial portion of the policy's cash value.


Quick and Convenient Access:

The process of obtaining a loan against the surrender value is often more straightforward and quicker compared to traditional loans. The paperwork is minimized with Mera Kal, and the funds can be disbursed within 2-3 days, providing a timely financial solution when needed.


Ultimately, finding out your surrender value can unlock a wealth of opportunities for your and could be a pivotal step towards financial literacy and responsible financial management. Whether you are a seasoned investor or a first-time policyholder, this calculator is tailored to assist you in harnessing the potential of your policy to make decisions that align with your unique financial objectives. Let's embark on this journey together and unlock the full potential of your insurance policies.


Varun Sanjeev

April 25, 2024

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