Jeevan Saral Plan:Calculation of Maturity Sum Assured on Surrender

Calculation of Maturity Sum Assured on Surrender:

1. Applicable Maturity Sum Assured (MSA) for Surrender of policy is the MSA corresponding to the term for which premiums have been paid under the policy as per age at entry of Policyholder. If the Premiums have been paid for fraction of the year, then MSA shall be worked out by way of mathematical interpolation.
2. If the date of Surrender is less than date of FUP then applicable MSA will be discounted for the period from date of FUP to Date of Surrender. (FUP minus Date of Surrender)
3. If the date of Surrender is more than date of FUP then applicable MSA will be accumulated for the period from date of FUP to date of Surrender. (Date of Surrender minus FUP)
4. The Period for which MSA is Discounted / Accumulated shall be taken in complete months and fraction of the month will be ignored.
5. The rate of interest for Discounting or accumulation of MSA will be announced by corporation at the beginning of each Financial Year. Current Rate is 7.50% p.a. compounding yearly.

Loyalty Addition Rules on Surrender:

1. Loyalty Additions are payable provided at least 10 years premiums have been paid under the policy and the policy is inforce for at least 10 years. It means that even if premiums are paid for 10 years and policy is surrendered before completion of 10 years then Loyalty Additions will not be paid.
2. For determining rate of loyalty additions, the duration in completed years for which premiums have been paid shall be considered. Fraction of the month shall be ignored. It means that even if the premiums are paid for 10 years and 11 months, loyalty addition rate of 10 years shall be applicable.
3. Loyalty addition rates announced as on Valuation date (31st March) will be paid on policies surrendered from 01st January to 31st December of next year. i.e. Loyalty Addition Rates of valuation as on 31/03/2018 will be applicable for Policies Surrendered between 1st January 2019 to 31st December 2019.
4. Loyalty addition rates applicable during the year of the surrender will be paid on the HIGHERof the:
   
   1. Accumulated / Discounted MSA And
   2. Paid up MSA = Original MSA x No of years Premiums paid / Premium Paying Term
      
      
5. Special Surrender Value (SSV) = Accumulated / Discounted MSA + Loyalty Additions.