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PLI Surrender Value Calculator

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A PLI Surrender Value Calculator is a helpful financial instrument for policyholders that can be used to estimate how much they will be able to receive in the event they choose to surrender their Postal Life Insurance (PLI) policy prior to its maturity. The user can input policy-related information like policy term, premium, duration completed and receive an instant estimate of the surrender value. This is useful for determining if it is financially better to surrender the policy or not. Just as the benefits of ULIP gives investors a chance to check the returns they can expect on their investment and the growth they can achieve from it, a PLI surrender value calculator helps them make an informed decision about insurance investments.

What is the surrender value of postal life insurance?

When a policyholder surrenders his postal life insurance, he will receive a certain amount based on the extent of premiums paid during the policy term. It is referred to as the surrender value and is returned by the insurance provider. The value is also dependent on other factors such as the type of plan, policy tenure, etc.,

The surrender facility is available to the Endowment Assurance, Whole Life Assurance, Convertible Whole Life Assurance, and the Joint Life Assurance plan after 3 years. And it does not apply to Anticipated Endowment Assurance and the Children Policy. Also, the bonus¹ based on the reduced sum assured is provided to the policyholder if they surrender it after 5 years.

Policyholders can avail of loans against postal life insurance as the PLI interest rate is extremely less and affordable. However, suppose the policyholder fails to pay the premium thrice. In that case, the insurance provider will process the surrender of the insurance plan and utilise the surrender value to pay off the premium due and the outstanding loan amount.

What is PLI surrender value calculator?

A Postal Life Insurance Surrender Value Calculator is an online tool that provides an estimation of the PLI surrender value. The surrender value will be the amount of money that the policyholder receives when he or she surrenders the policy before it matures, depending on the terms and conditions of the insurance company. The calculator considers factors such as the policy type, premiums paid, policy term completed, and applicable surrender value rates to provide an estimated surrender value. It helps policyholders understand the financial impact of surrendering their policy and compare available options before making a decision.

How to calculate the surrender value?

Policyholders can use the simplest online tool, the postal life insurance calculator, to determine the surrender value. The calculation of the surrender value involves a few simple steps.

Before understanding the postal life insurance calculator, let us know when the PLI policy will attain a surrender value.

If the policy tenure is less than 10 years, the PLI will attain a surrender value after the policyholder has paid the premium for at least 2 years.

If the policy tenure is 10 years or more, the PLI will attain a surrender value after the policyholder has paid the premium for at least 3 years.

PLI surrender value calculator

A surrender value calculator is a simple tool available online that is free of cost. It can instantly determine the most approximate surrender value for the PLI policy based on certain basic information provided by the policyholder. Here is a detail about how to use it.

Visit the Postal Life Insurance official website.
Browse through the site to find the PLI surrender calculator.
The system will prompt for certain basic information such as name, contact details, policy name, policy tenure, number of premiums paid, etc.,
After providing these basic details and verifying the same, proceed to determine the surrender value.
The system will instantly compute the value and display it on the webpage.

The policyholder can utilise the PLI calculator to determine the PLI surrender value for the consideration of completion after 3 years, 5 years, 10 years, etc.

How does the PLI surrender calculator determine the surrender value?

The PLI surrender value calculator works based on the following formula.

PLI surrender value = (Paid up value + Bonus¹ based on the reduced sum assured) x surrender factor

Paid up value = (Sum assured x No. of years or months of premium)/Total policy tenure in months or years

Bonus¹ = (Paid up value x Policy Tenure x bonus¹rate)/1000

The surrender factor is predetermined and present in the PLI surrender factor table available online for any references.

The bonus¹ is added in April for the policies for which the premiums have been paid regularly till March.

How does the PLI surrender value calculator work?

Here is how the PLI surrender value calculator works:

Add policy information: Enter the policy type, period, starting date, and premium information.
Calculates surrender value: Applies the appropriate surrender value factor, using policy data.
Includes bonus benefits: Considers accrued bonuses (if any).
Paid-up value: Calculates the value based on the paid-up value.
Saves time: Generates a quick surrender value estimate, saving time and effort.

Key features of PLI surrender value calculator

The key features of PLI surrender value calculator online are presented below:

Quick surrender value: Provides an estimated surrender value.
Simple inputs: The calculator requires simple policy information for its calculation.
Bonus consideration: If applicable, include eligible bonuses.
Correct results: Minimises human error in calculations.
Easy to use online tool: Intuitively accessible and easy to use on the web.

Table for calculation of surrender value

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
21	0.646	0.599	0.508	0.401	0.318	0.254	0.205	0.182	0.169	0.105
22	0.678	0.587	0.533	0.42	0.333	0.266	0.214	0.19	0.176	0.109
23	0.712	0.616	0.559	0.441	0.349	0.278	0.224	0.199	0.184	0.113
24	0.747	0.646	0.587	0.462	0.366	0.291	0.234	0.208	0.192	0.118
25	0.784	0.678	0.616	0.485	0.383	0.305	0.245	0.217	0.201	0.123
26	0.823	0.712	0.646	0.508	0.402	0.319	0.257	0.227	0.21	0.128
27	0.864	0.747	0.678	0.533	0.421	0.335	0.269	0.238	0.22	0.133
28	0.907	0.784	0.712	0.56	0.441	0.351	0.281	0.249	0.23	0.139
29	0.952	0.823	0.747	0.587	0.463	0.367	0.295	0.26	0.241	0.145
30		0.864	0.784	0.616	0.485	0.385	0.309	0.272	0.252	0.151
31		0.907	0.823	0.646	0.509	0.404	0.323	0.285	0.264	0.158
32		0.952	0.864	0.678	0.534	0.423	0.339	0.299	0.276	0.165
33			0.907	0.712	0.56	0.443	0.355	0.313	0.289	0.172
34			0.952	0.747	0.588	0.465	0.372	0.327	0.302	0.18
35				0.784	0.617	0.488	0.389	0.343	0.316	0.188
36				0.823	0.647	0.511	0.408	0.359	0.331	0.196
37				0.864	0.679	0.536	0.428	0.376	0.347	0.204
38				0.907	0.712	0.562	0.448	0.394	0.363	0.213
39				0.952	0.748	0.59	0.47	0.413	0.38	0.223
40					0.784	0.618	0.492	0.432	0.398	0.232
41					0.823	0.649	0.516	0.453	0.417	0.242
42					0.864	0.68	0.541	0.474	0.437	0.253
43					0.907	0.714	0.566	0.497	0.457	0.264
44					0.952	0.749	0.594	0.52	0.478	0.275
45						0.785	0.622	0.545	0.501	0.286
46						0.824	0.652	0.57	0.524	0.298
47						0.864	0.683	0.597	0.548	0.31
48						0.907	0.716	0.625	0.574	0.322
49						0.952	0.75	0.655	0.6	0.334
50							0.787	0.686	0.628	0.347
51							0.825	0.713	0.657	0.36
52							0.865	0.752	0.688	0.374
53							0.907	0.788	0.72	0.387
54							0.952	0.82	0.753	0.401
55								0.805	0.789	0.415
56								0.908	0.826	0.429
57								0.952	0.866	0.443
58									0.908	0.458
59									0.952	0.473

Advantages of using the PLI policy surrender value calculator

The PLI Policy Surrender Value Calculator offers several advantages, such as:

Saves time: The calculator provides results within seconds, thus, saving time.
Assists with financial planning: Helps decision-making based on a comparison between surrender and continuation of the policy.
Improves transparency: Displays the estimated amount to be received.
Minimises calculation mistakes: Calculations are automated, reducing the likelihood of mistakes.

Enhancing life insurance coverage

Considering the financial inconsistencies observed in the recent pandemic, every policyholder must determine the necessary life insurance coverage to protect their family's financial future. They can opt for life insurance offered by private insurance providers to enhance their life coverage.

For example, with a life insurance company like Tata AIA, you can get different life insurance plans that provide a huge sum assured at an affordable rate. The policyholders can extend the advantages of life insurance by including savings and investment options to accomplish future financial goals while ascertaining the life cover benefit. We also provide online life insurance policy solutions that help policy seekers view and compare unique features to customise them as per their individual financial needs.

Conclusion

Postal life insurance provides life coverage benefits to the government, semi-government employees, and other professionals. However, due to a financial emergency, when a policyholder decides to surrender the PLI policy, they will receive a surrender value based on the premiums paid.

Knowing the basis of this surrender value calculation during policy inception is important to make well-informed financial decisions later. The PLI surrender value calculator is an online tool that helps determine this value in a few simple steps. It is easy to use, determines the value instantly and helps compare different PLI policies to make the best choice.

Tata AIA Life Insurance

A joint venture between Tata Sons Pvt. Ltd. and AIA Group Ltd. (AIA), Tata AIA Life Insurance is one of the leading life insurance providers in India. We post everything you need to know about life insurance, tax savings and a variety of lateral topics such as savings and investments in this space. You can access and read a host of different blogs, articles and pages at the Tata AIA Life Insurance Knowledge Center or get in touch with us with any queries or questions!

View all posts by Tata AIA Life Insurance

Key Takeaways

Surrender value calculator is used to estimate amount in case of policy surrender.
The calculator considers factors like policy type, premiums paid, policy term completed, etc.
PLI Policy Surrender Value Calculator offers several advantages like it saves time and assists with financial planning

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How do I use the PLI surrender value calculator?

Enter policy details such as policy term, premium amount, premium payment history, and policy duration completed. The calculator then estimates the surrender value instantly.

What features should I know when using the PLI surrender value calculator?

Key features include instant calculations, eligibility assessment, paid-up value estimation, bonus consideration, error-free calculations, and support for informed financial decision-making.

What is the surrender value of my PLI policy?

The surrender value depends on factors such as policy type, premiums paid, policy tenure completed, and applicable surrender value rules under the Postal Life Insurance scheme.

Is surrender value from PLI taxable under income tax laws?

Tax treatment depends on policy conditions and prevailing income tax regulations. Policyholders should review applicable tax provisions or consult a qualified tax professional.

Where can I check the surrender value rules for PLI policies?

You can refer to official Postal Life Insurance guidelines, policy documents, or the relevant government-issued policy terms to understand surrender value eligibility and calculation rules.

¹These bonuses are not guaranteed in nature. The Company may declare Cash Bonus rate annually in advance. The Cash Bonuses if declared, will be applicable provided all due premiums have been paid.
This blog is for information and illustrative purposes only and does not purport to any financial or investment services and do not offer or form part of any offer or recommendation. The information is not and should not be regarded as investment advice or as a recommendation regarding any particular security or course of action.
Please know the associated risks and the applicable charges, from your insurance agent or the Intermediary or policy document issued by the insurance company.
Every effort is made to ensure that all information contained in this blog is accurate at the date of publication, however, the Tata AIA Life shall not have any liability for any damages of any kind (including but not limited to errors and omissions) whatsoever relating to this material.