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 between May-2019 to April-2020. 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"
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.
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