PLI Surrender Value Calculator – Steps of using the Surrender Value Calculator
While buying a life insurance policy comes with a lot of benefits, some of the questions hover in the mind of the policyholders. One of the most common questions is calculating the surrender value of the insurance plan that they are purchasing. Well, before you jump on to using a PLI surrender value calculator, let us first try to understand what Postal Life Insurance is.
- What is PLI Surrender Value?
- What is the PLI surrender value calculator?
- How does a PLI Reach a Surrender Value?
- How do we Calculate Surrender Value?
- Process to determine surrender value using the Surrender Calculator for PLI
- PLI Surrender Factor Table
- Steps of using the Surrender Value Calculator
- Advantages of Using Online PLI Surrender Value Calculator
Post Life Insurance (PLI) is basically a term life insurance plan which is for employees from government, and semi-government sectors, and for other professionals in India. The benefits associated with a PLI plan are many. Nevertheless, there could be a host of reasons why a policyholder may choose to surrender his/her postal life insurance policy. If you are one of them, then you need to know the surrender value. Therefore, while you are buying a PLI policy, you must be aware of the calculation policy, as it will help you to make an informed decision.
What is PLI Surrender Value?
As you surrender your PLI plan, you will get a certain amount of premiums that you paid. This will be returned by the insurer. The payment you receive is called the surrender value. In the case of WLA, EA, CWLA, and YS policies, you will receive the PLI surrender value after 3 years. The value you receive will depend on the surrendering type, factor, and plan term.
Also Read: RPLI
What is the PLI surrender value calculator?
The PLI surrender value calculator is an online tool available freely. Being a simple tool, it can be used without any hassle to estimate your PLI’s surrender value. The estimation is done as per some basic details submitted by the policyholder.
Here’s how you can use the PLI surrender value calculator:
- Go to the official website of the Postal Life Insurance (PLI) policy https://pli.indiapost.gov.in/CustomerPortal/Home.action
- Look for the PLI surrender calculator on the site
- You will have to submit some basic information – the name of the policyholder, contact details, name of policy, tenure, and premiums
- Once you proceed further after submitting the details, you can see the surrender value on the screen that appears
- The PLI calculator can be used to estimate the surrender value of your PLI at 3/5/10 years, and so on.
How does a PLI Reach a Surrender Value?
Below are the Situations Under Which a PLI Acquires a Surrender Value:
- Plan Tenure is 10 years and above – If the premiums of the PLI were paid regularly for 3 years in a row, the PLI surrender value is obtained. Once the PLI is 10 years old, you can also use a calculator to estimate the PLI Surrender value.
- Plan tenure is Less than 10 Years – If the PLI is less than 10 years old, you can get a surrender amount in case the premium has been paid regularly for 2 consecutive years.
How do we Calculate Surrender Value?
If you have a PLI plan and now you want to surrender it, you need to know the surrender value. The easiest way to do that is using a PLI policy surrender value calculator. All you need is a device that can be connected to a stable internet connection and the PLI Surrender Value Calculator. You would be required to provide certain information such as the premium amount that you paid, the term of your policy, the mode of premium payment, the number of years that your plan completed, the amount of the premium installment that you paid, and many more.
Once all of these details are provided, the calculator will calculate the surrender value of your PLI policy. With the help of this PLI calculator, you can also find out the PLI surrender value of 3 years, PLI surrender value of 5 years, and PLI surrender value of 10 years.
The PLI surrender value calculator is an online tool that you can use at any time at your convenience. As you provide some basic information that is related to your PLI policy, you will get to know the surrender value in just a few seconds.
Process to determine surrender value using the Surrender Calculator for PLI
The below determinants are considered while using the PLI surrender value calculator:
- PLI surrender value
- Paid-up value and
- Bonus
The PLI surrender value is the combination of the paid-up value plus the bonus calculated as per reduced SI multiplied by the surrender factor.
Hence, PLI surrender value = paid-up value + bonus x surrender factor
Similarly, the paid-up value is equal to the sum assured multiplied by the number of years/months of premium divided by the total tenure of the policy.
Hence, Paid-up value = sum assured x total premium period/total policy period
Bonus, on the other hand, is equal to paid-up value multiplied by policy duration multiplied by bonus rate)/1000
Hence, Bonus = (Paid up value x Policy Tenure x bonus rate)/1000
The surrender value under a PLI is determined in advance and is available online in the table of PLI surrender factor. Check the table below:
PLI Surrender Factor Table
You can refer to the below-mentioned PLI Surrender Value Calculation Sheet for calculating the surrender amount.
| Exact age | EA/30 | EA/33 | EA/35 | EA/40 | EA/45 | EA/50 | EA/55 | EA/58 | EA/60 | WL | |||||
| 20 | 0.616 | 0.533 | 0.485 | 0.383 | 0.303 | 0.242 | 0.196 | 0.174 | 0.162 | 0.101 | |||||
| 22 | 0.678 |
|
|
0.420 |
|
0.266 | 0.214 | 0.190 | 0.176 | 0.109 | |||||
| 24 | 0.747 | 0.646 |
|
|
|
0.291 | 0.234 |
|
|
0.118 | |||||
| 26 |
|
0.712 | 0.646 |
|
|
|
0.257 |
|
0.210 | 0.128 | |||||
| 28 | 0.907 | 0.784 |
|
|
0.441 | 0.351 |
|
|
0.230 | 0.139 |
Also Read: PLI Interest Rate
Steps of using the Surrender Value Calculator
Using the surrender value calculator of the PLI term plan is not at all difficult. You just need to follow some simple steps, which are mentioned herein below:
- The foremost thing you need to do is visit the official website of Postal Life Insurance
- Now as you find the Surrender Value Calculator, you have to click on it
- At this point, you have to enter all the required details such as your name, your contact number, policy name, policy term, mode of paying the premium, number of premium installments that have been paid, etc.
- Once you submit all these details, the calculator will take its time, which is not more than a few seconds, and give you the approximate surrender value. You will be able to see the surrender value on the display page.
Also Read: LIC Surrender Value Calculator
Advantages of Using Online PLI Surrender Value Calculator
Some of the benefits of using the PLI surrender value calculator are mentioned herein below:
- It is an online tool and you can use it even from the comfort of your home and without anybody’s help
- It is very easy and user-friendly
- You can compare the PLI policies without any hassles
- You can have access to details that affect the premium rates.
On the basis of several parameters, a PLI surrender value calculator fetches out the approximate surrender value. You can use the calculator to come up with a decision while choosing the right plan.
Also Read: HDFC Life vs ICICI Prudential
FAQs on Postal Life Insurance (PLI) Surrender Value Calculator
You can surrender your PLI policy after 3 years, if the policy is WLA, EA, CWLA, and YS. In the case of the AEA and Children policy, there is no surrender facility available.
Surrender value depends on the factor of surrendering, type, and policy term.
To calculate your PLI surrender value, you can use the PLI surrender value calculator. You can visit the website of Postal Life Insurance, find the surrender value calculator from there, enter all the required details and get the approximate PLI surrender value.
The lock-in period of a PLI policy is 3 years. After completion of this lock-in period, you can choose to surrender the policy.
Although both come with their set of benefits, the premium you have to pay for a PLI policy is much more affordable than a LIC policy. Apart from this, the bonus rate offered by PLI is 7% or more, while LIC’s bonus rate is around 4% to 5%.
The surrender value received under a PLI policy depends on different things like the type of policy, policy tenure, and surrender value. If you surrender the policy after 5 years, you will also receive the bonus calculated as per the reduced sum assured.
The lock-in period for a PLI is 3 years after which the policyholder can surrender the PLI. You can calculate the surrender amount after 3 years using a PLI surrender value calculator.
If your spouse is working in a government organization, whereas you are working in the non-government sector, you can avail of a PLI in the form of a joint policy called the ‘YugalSuraksha’ scheme to cover you and your spouse.
Yes, you may continue the policy by paying the premium at a post office anywhere in the country.
Surrendering a PLI causes losses and hence it is not advisable to surrender your PLI policy unless it is an emergency.
PLIs are purchased to secure a family financially. This way, one can secure his/her family in the event of the sudden demise of the insured. To receive the benefits under the PLI, it is important to keep the policy active by paying premiums on time.
Author Bio
Paybima Team
Paybima is an Indian insurance aggregator on a mission to make insurance simple for people. Paybima is the Digital arm of the already established and trusted Mahindra Insurance Brokers Ltd., a reputed name in the insurance broking industry with 17 years of experience. Paybima promises you the easy-to-access online platform to buy insurance policies, and also extend their unrelented assistance with all your policy related queries and services.
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