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LIC Jeevan Akshay VII Surrender Value Calculator

LIC Jeevan Akshay VII can be surrendered after 3 months from the date of purchase and surrender option is available for option F and J only. The surrender value depends upon annuity rate, year of surrender and two factors F1 and F2. These factors are declared for a period 12 months at a time and currently, it is available for policies which comes for surrender between 01-May-2020 to 30-April-2021. This calculator is based on above factors and it is not official calculator of LIC. The formula and method of calculation is explained after the calculator.

Related Link: Jeevan Akshay VII Pension Calculator

Jeevan Akshay VII (857) Surrender value Calculation

Surrender Value = (F1 * Equivalent annuity amount payable for yearly mode + F2 * 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 Pure Term Assurance Factor respectively. The value of these factors will be applicable for age at which policy is surrendered. A policy with following details has been taken for explanation purpose.

As per above details, if the policy is surrendered after 25 years from the year of purchase and age of the policyholder at the time of surrender will be 80 years. The surrender factors F1 and F2 for surrender age 80 years, are 4.9440 and 0.5475 respectively. As per above parameters, surrender value calculation will be as follows.

Surrender Value= (4.9440 x 1,07,300 - 0.5475 x 10,00,000) - (1,07,300/2) =15,71,841

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 (1,07,300/2). Years and ages are counted as whole years.

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