BANKING AFFAIRS

Detailed explanation-1: -The amount of money charged by the insurer to the policyholder for the coverage set forth in the insurance policy is called the premium.

Detailed explanation-2: -After the policy is issued, the policyholder in a number of cases finds the terms not suitable to him and desires to change them. LIC allows certain types of alterations during the lifetime of the policy. However, no alteration is permitted within one year of the commencement of the policy with some exceptions.

Detailed explanation-3: -Visit the nearest LIC branch and avail a surrender discharge form. Submit the filled form along with the required documents. After submitting the form and documents, the insurer will process the surrendering of the LIC policy. The surrender value will be provided to you when the request is approved by the insurer.

Detailed explanation-4: -You can calculate the surrender value of your policy using this simple formula [Basic sum assured (Number of premiums paid/Total number of premiums payable) + Total bonus received] x Surrender Value Factor. Let’s take an example of LIC Jeevan Anand policy to understand the parameters involved.