Jeevan Shanti Surrender Value Calculator

In LIC Jeevan Shanti plan (Plan 850), only options "F" & "J" under immediate annuity and both options available under deferred annuity can be surrendered after 3 months of purchase. Following calculator provides surrender value for above 4 options which are eligible for surrender value. Please note, it is not official surrender value calculator of LIC. The surrender value is based on various surrender factors applicable to those policies which will come for surrender before April-2019. These factors will be declared for each subsequent year in the future. The method of calculation is explained after the calculator.

Related Link: Jeevan Shanti Pension Calculator


How to calculate surrender value in Jeevan Shanti Pension plan

Surrender Value in Jeevan shanty pension is calculated as per following formulas.

1. During deferment period under Deferred Annuity:

Surrender Value = F3 * (F1 * Equivalent annuity amount payable for yearly mode + F2 * 110% of Purchase Price)

Where F1 and F2 are the Annuity Factor and Risk Factor respectively applicable at the age when annuity will start and F3 is the factor applicable for the outstanding deferment period in complete full years as at the date of surrender.

2. After deferment period under Deferred Annuity and Under Immediate Annuity:

Surrender Value = (F1 * Equivalent annuity amount payable for yearly mode + F2 * 110% of Purchase Price) - Annuity installments paid under the policy during the policy year of surrender up to the date of surrender

Where F1 and F2 are the Annuity Factor and Risk Factor respectively applicable at the age when policy is surrendered.

Example of calculation in case of "after deferment period under Deferred Annuity"

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A policy with following details has been taken for explanation purpose.

Age at purchase 50
Purchase Price 10,00,000
Deferement Period (Years) 10
Purchase Year 2018
Surrender Year 2038
Annuity(Yearly) 128300

As per above details, pension will start after 10 years when policy holder's age will be 60 years. As the policy is surrendered after 20 years, so age of the policyholder at the time of surrender will be 70 years.

As per surrender factor circular for Jeevan Shanti policy, F1 and F2 will 7.3250 and 0.3091 respectively for surrender age 70 years. So calculation goes as follows.

Surrender Value= (7.3250 x 1,28,300 - 0.3091 x 1.1 x 10,00,000) - (1,28,300/2) =1215658

Assumptions: Annuity installments paid under the policy during the policy year of surrender up to the date of surrender is taken as half of yearly annuity (1,28,300/2). Years and ages are counted as whole years.

Comments & Reviews (13)

Wrote :

02-12-2018 13:30:53

Suppose I invested 10lakhs & pension get after 5 years.But want to surrender it after getting 3 years of pension. What will be the surrender value?

Wrote :

04-12-2018 15:47:01

Please use above calculator.

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Wrote :

28-11-2018 19:49:08

Suppose I am 38 years old(Nov 2018) and I invest Rs 500000 on 20 years deferred scheme in Jeevan shanti LIC plan, but if I need to surrender after 4 years (Dec 2022), then what will be the total surrender value.

Wrote :

29-11-2018 11:06:27

Please use above calculator.

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Wrote :

24-11-2018 10:43:04

After surrendering while receiving pension pension will stop or it will continue

Wrote :

24-11-2018 12:32:53

Surrendering means closing policy before its completion so pension will not continue.

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Wrote :

15-11-2018 20:35:43

in joint life, husband-wife, after receving husband death claim, what will be wife pension ?

Wrote :

15-11-2018 22:35:06

In joint life, there is no death claim in case death of primary policyholder ( husband), it is the same pension which continues to secondary policyholder (wife). Death claim is paid in case of death of both the policyholders.

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Wrote :

22-10-2018 00:10:37

If I invest 2 lac age 46 and my deffered period 2 years after 5 year i want to surrender my policy how much money i will get back

Wrote :

22-10-2018 12:54:41

Please use above calculator to calculate approximately surrender value.

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Wrote :

10-10-2018 21:58:36

Thanks for app . Nice one. On which formula it works that k don't no.

Wrote :

10-10-2018 23:34:05

It is explained above. Formula is given above and values of F1, F2 and F3 are provided by LIC.

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Wrote :

08-10-2018 21:00:14

Is this returns coming under IT exemption or taxable

Wrote :

09-10-2018 12:44:28

Yes, it will be taxable.

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Wrote :

06-10-2018 15:26:20

i am aged 75 years.if i invest 10 lac under plan 850 is jeevan shanthi. in joint name of my wife. also can we nominate my daughter. suppose after my death whether my wife will continue to get pension. after that whether my daughter will get pension or premium amount . pl explain. also what plan ie abcdef etc. what is that.

Wrote :

06-10-2018 18:10:08

Sir, In case of option J, you will get pension, after that your your wife will get the same pension. In case of death of both of you, your daughter as nominee will receive death claim which will be at least 11,00,000. She (daughter) can take this 11,00,000 as single amount or in installment or she can purchase a new jeevan shanti as per her choice of option.
Please note, nominee will get death claim, no pension from your plan.

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Wrote :

21-09-2018 13:19:34

1000000/- Mumbai please surrender value after 10year

Wrote :

23-09-2018 15:57:08

For surrender value calculation, age at the time of purchase is also required, you may calculate it yourself using above link.

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Wrote :

19-09-2018 21:15:58

If I invest 500000 in immediate annuity after 10yrs how much will get monthly pension. Age is 50 as of now. N if death in this 10yrs how much will d nominee get. Is it advisable to hv a nominee or in joint.

Wrote :

23-09-2018 23:25:08

Sir, please use pension calculator it will calculate pension as well as death claim in all cases. Nominee selection should be decided as per your future planning related to your dependents.

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Wrote :

19-09-2018 15:14:32

i have deposite 10,00,000 2018 Year As per entered details, surrender value after 10 year(s), will be as per following table. Year of Surrender 2028 Surrender Value (approx.) Rs. 853441 why deduction main 10 lack amount

Wrote :

20-09-2018 00:40:13

Surrendering policy is loss incurring as it disturbs the schedule of investment done by the insurance company.

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Wrote :

16-09-2018 17:00:10

If I invest 5 lac and my deffered period immediate after 5 year i want to surrender my policy how much money i will get back

Wrote :

16-09-2018 19:45:40

Please use above calculator for approximate surrender value.

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Wrote :

16-09-2018 10:25:48

Excellent policy for early and old age.

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