If you are planning to surrender your SBI life insurance policy, you might be worrying about how much money you will get as surrender value. The surrender value depends on various factors such as your policy tenure, sum assured, premium paid, etc. Manual calculators for surrender value consume lots of time and are prone to manual errors. However, you can check the SBI Life Insurance surrender value using the SBI Life Insurance surrender value calculator.
In this article, we will discuss the details about the SBI life surrender value calculator, its working, and more.
What is the SBI Life Insurance Surrender Value Calculator?
The SBI life insurance policy surrender value calculator is a digital tool to estimate how much you will get when you surrender your life insurance policy before the maturity date. The calculator asks you for some important details of your SBI life insurance policy, such as total premium paid, policy term, surrender year, and bonus. The plan offers instant estimates without errors and helps you understand the financial effects of surrendering your policy before maturity.
How to use a LIC Life Surrender Value Calculator?
To use the surrender value calculator, you need to enter the details of your policy, such as sum assured, premium, paid, payment term, and policy tenure. If you want to use the SBI life insurance policy surrender value calculator, follow the steps below:
- Choose your SBI life plan from the dropdown menu on the SBI life surrender value calculator.
- Enter important details for your policy.
- Press the “Calculate” option.
- You will be able to instantly view the estimated surrender value.
Benefits of using the SBI Life Surrender Value Calculator
The SBI life surrender value calculator helps you to know your surrender value and make informed decisions. The major benefits of the SBI life insurance surrender value calculator are:
- Free and Easy to Use: The SBI life insurance policy surrender value calculator is easy to use and free of cost. You can use the calculator multiple times without paying any fees.
- Financial Planning: The calculator helps you to plan your finances and make better decisions.
- Accurate Results: The SBI life surrender value calculator helps you to know the exact money you will get after surrendering your policy.
- Quick Results: By entering a few important details related to your policy, you will get instant results. The value provided to you will be accurate.
Why should you check the Surrender Value?
It is very important to check the surrender value because it helps you manage your finances better and evaluate if you will be able to fulfill your financial needs with the surrender value or not.
- Better Financial Planning: You can plan your finances better if you know the SBI life insurance surrender value. It helps you to know if the amount will be enough to meet your financial needs or not.
- Avoid Financial Losses: When you surrender your policy during the early years, you will get a lower amount. Checking your surrender value can help you prevent losses.
- Compare Alternatives: You can easily compare the surrender values of different plans. You will get other options also, such as taking a loan against the policy.
- Better Emergency Decisions: You can make better financial decisions in case of an emergency and estimate if the cash will solve your financial issue.
When is the SBI Life Insurance Policy Eligible to get the Surrender Value?
Here are the various types of policies and their surrender eligibility:
- If the Duration of the Policy is 10 Years or More: If your policy duration is 10 years, you will get the surrender value if you have paid premiums for at least 3 consecutive years.
- If the Policy Duration is Less than 3 Years: In this case, you will get the surrender value if you pay premiums for 2 consecutive years.
- If a Single Premium Plan: If you have a single premium plan policy, you can surrender it anytime, and the surrender value will be 70%.
How is SBI Life Insurance Surrender Value Calculated?
To calculate surrender value, SBI uses the formula:
Surrender value factor x (unexpired policy term / original policy term) x premiums paid.
Here are some examples:
| Policy Value | Surrender Value Factor (%) |
| 1st year | 0% |
| 2nd year | 30% |
| 3rd year | 40% |
| 4th year | 50% |
| After the premium term | 70% |
| You May Like to read: LIC Surrender Value Calculator
Conclusion
The SBI life insurance policy surrender value calculator is an online tool useful to estimate the money you will receive after surrendering your policy. You need to enter basic policy details, including tenure, premiums paid, sum assured, etc, to get the accurate and instant results. It will not only help you to know your plan’s surrender value but also help you to make better financial decisions. This calculator provides transparency and clarity about your SBI life insurance policy.
SBI Life Surrender Value Calculator – FAQs
Is the SBI life insurance surrender value the same as the fund value in ULIPs?
Ans. No, the fund value is the current market value of the investment. When you surrender your policy, the charges and deductions are applied, and the remaining amount is provided to you.
Will surrendering my SBI life insurance policy impact my credit score?
Ans. No, surrendering your SBI life insurance policy will not affect your credit score. If you take out a loan against it and fail to repay on time, your credit score will fall.
Is it possible to withdraw my money from the policy without surrendering?
Ans. An SBI life insurance policy does not allow a partial withdrawal option, but you can take a loan against it. It will help you get money without losing your policy.
What is a better option – surrendering the SBI life insurance policy or taking a loan against it?
Ans. If you surrender your SBI life insurance policy, your life cover will end, and you will get a lower payout. On the other hand, if you take out a loan, you will be able to meet your financial needs without giving up your policy.
Does the SBI life insurance policy surrender value calculator show the exact amount?
Ans. No, the result you get is not exact. The SBI life surrender value calculator offers the estimated amount based on the details you have entered in the calculator.
