Bajaj Allianz Surrender Value Calculator

Surrender Value Formula:

\[ SV = \left(\frac{\text{Premiums Paid}}{\text{Premiums Payable}} \times \text{Sum Assured} + \text{Bonus}\right) \times \text{SV Factor} \]

Premiums Paid:

number

Premiums Payable:

number

Sum Assured:

rupees

Bonus:

rupees

SV Factor:

Surrender Value:

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1. What is the Bajaj Allianz Surrender Value?

The surrender value is the amount a policyholder receives when they terminate an insurance policy before its maturity date. It represents the cash value of the policy after accounting for premiums paid, bonuses, and surrender charges.

2. How Does the Calculator Work?

The calculator uses the Bajaj Allianz surrender value formula:

\[ SV = \left(\frac{\text{Premiums Paid}}{\text{Premiums Payable}} \times \text{Sum Assured} + \text{Bonus}\right) \times \text{SV Factor} \]

Where:

\( \text{Premiums Paid} \) — Number of premiums actually paid
\( \text{Premiums Payable} \) — Total number of premiums payable under the policy
\( \text{Sum Assured} \) — Base insurance amount (in rupees)
\( \text{Bonus} \) — Any accrued bonuses (in rupees)
\( \text{SV Factor} \) — Surrender value factor (percentage)

Explanation: The formula calculates the proportion of premiums paid, applies it to the sum assured, adds any bonuses, and then applies the surrender value factor to determine the final payout.

3. Importance of Surrender Value Calculation

Details: Understanding the surrender value helps policyholders make informed decisions about continuing or terminating their policies, especially during financial difficulties.

4. Using the Calculator

Tips: Enter all required values accurately. Premiums paid should be less than or equal to premiums payable. The SV factor is typically provided by the insurer based on policy duration.

5. Frequently Asked Questions (FAQ)

Q1: When does a policy acquire surrender value?
A: Most policies acquire surrender value after 2-3 years of premium payments.

Q2: Is surrender value taxable?
A: Surrender values may be taxable if received before completing 5 years, depending on tax laws.

Q3: How is the SV factor determined?
A: The insurer determines the SV factor based on policy duration and type - it typically increases with longer policy tenure.

Q4: Can I get my full premium back if I surrender?
A: No, surrender value is usually less than total premiums paid due to charges and fees.

Q5: Are there alternatives to surrendering?
A: Yes, options like premium holidays, reduced paid-up insurance, or policy loans may be available.