SBI Life Surrender Value Calculator – Factors and Benefits of SBI Life Insurance Policy Surrender Value Calculator

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Updated on Dec 29, 2023

Life insurance policies are a kind of security that people buy to protect their family members against the uncertainties of life. However, at times it becomes difficult for policyholders to continue with their life insurance plan due to the financial crisis. In such a scenario, they want to surrender the policy. However, being unaware of the cancellation/surrender charges attached to the plan, they find it difficult to cancel the plan. If you are in such a fix, you can use a Life Insurance Policy Surrender Value Calculator to solve your issue.

In this post, we will discuss how to calculate the surrender value of an SBI life policy by using the SBI life insurance surrender value calculator. But before that, let’s take a look at what the SBI life insurance policy surrender value is.

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What do you Mean by SBI Life Insurance Policy Surrender Value?

Life insurance policies come with a long tenure during which the policyholder is expected to pay the premium of the plan to avail continued coverage on their life. However, at times people face certain unforeseen situations wherein they are unable to pay the premiums of their life policy and have to surrender the plan. Surrendering a policy means terminating it before the policy reaches maturity.

If a policyholder surrenders a life insurance policy in the middle of the policy term, the person gets a surrender amount from the insurer. However, a surrender value is associated with it, which is deducted from the sum the policyholder receives. This surrender value varies from policy to policy. In the case of SBI life insurance plans, the surrender value received from the insurer is generally the premium amount paid by the policyholder towards the plan.

How does a Life Insurance Plan of SBI Attain Surrender Value? 

Below are some situations under which SBI life insurance plans can obtain a surrender value:

1. If the term of your SBI life insurance policy is Ten Years or more

In this case, the SBI life insurance surrender value is reached if the premium for the plan has been regularly paid for at least three consecutive years

2. If the tenure of your SBI life insurance policy is less than ten years

In case the term of your SBI life policy is less than ten years, it will reach surrender value if the premium is paid for a regular period of two years

What is a Surrender value Calculator of the SBI Life Insurance Policy?

The SBI life insurance policy surrender value calculator is an online tool that can be accessed freely to compute the surrender value of SBI life policies. You need to provide some basic details of your policy to instantly calculate the surrender amount of your SBI life policy using the online tool.

How do you Calculate SBI Surrender Value?

Calculating or computing the surrender value of a life insurance plan these days is very easy and hassle-free. If you are an insurance policyholder looking for ways to calculate the SBI life surrender value, you can use the online tool surrender value calculator of the life insurance policy.

This efficient tool computes the precise surrender value of a plan within minutes if you provide the tool with some information related to your policy. Some such information includes the policy term of your plan, premium amount, premium payment mode, the premium already paid for the policy, the number of years for which the plan has been active, etc.

Once you submit all the details pertaining to your policy in the online tool, the surrender value calculator of your SBI life insurance policy determines the surrender value promptly.

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Surrender Benefits Received Under the SBI Life Insurance Policy

1. Regular premium

No surrender benefit is offered in case of regular premiums

2. Single premium

The policyholder can surrender the policy anytime during the policy term if they pay a single premium. In this case, they can avail 70% of the paid amount as surrender value

3. Limited Premium

If the policyholder pays a limited premium for the life insurance policy, the surrender value they receive is – surrender value factor X multiplied by the total premiums paid.

Here, the value factor X means unexpired policy tenure/original policy tenure.

Surrender Value Factors

Policy year

Surrender value factor (in %)

1

0
2

30

3

40

4 to the last ppt

50

For the remaining term of the policy

70

Benefits of SBI Life Insurance Policy Surrender Value Calculator

The online tool of the SBI life insurance policy surrender value calculator is a simple and flexible tool that allows quick policy comparisons depending on different factors. The policyholder can use the tool to analyze the needs of a person to be able to make an informed decision about choosing the right policy.

Below are some key benefits of using an SBI life insurance surrender value calculator:

  • The tool is very easy to use and helps with policy finances
  • It is a hassle-free procedure to estimate the surrender value with this tool
  • The tool makes it easy to compare the surrender value of different SBI life policies
  • It is effective in saving time
  • It also saves cost as it is freely available online
  • It allows the insured to access every piece of information related to the parameters that might impact the surrender value of your policy

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To Sum Up

An SBI life insurance policy secures a family against any untoward situations. But you never know when financial turmoil will hit you. So, in such cases, it is good to know how to surrender your SBI life policy and how to use the SBI life insurance surrender value calculator to estimate the surrender amount. The surrender value calculator allows a convenient way for SBI policyholders to surrender plans.

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FAQs: SBI Life Insurance Policy Surrender Value Calculator

How to use the SBI Smart Platina Assure plan calculator?

The SBI Platina Assure plan calculator works like any other life insurance plan calculator and is easy to use and access online.

How is SBI Life surrender value calculated?

The surrender value of the SBI Life Insurance policy is calculated as a single premium (X) multiplied by 75% of the outstanding term to the total term.

How to calculate the surrender value of a state life insurance policy?

Calculating the surrender value of your life insurance plan is very simple. You just need to add the total premiums paid and subtract the charges levied by your insurer to calculate the surrender value of your policy.

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Aug 17, 2023
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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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