ABSLI Policy Surrender Value
  • Understanding the surrender value
  • What is the insurance surrender place?
  • What are the documents required?
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Aditya Birla Life Insurance Policy Surrender

Are you thinking of surrendering your life insurance policy? If yes, then you must understand the charges attached to the policy cancellation or surrender.

Life insurance is a long-term commitment and ideal way to secure the future of your family in the event of your demise. But we understand that there are some circumstances when you have to give up the policy before the end of the policy term. The reason could be anything, maybe the policy does not meet current financial needs or found a better option. Here you will get to know about the surrender process of Aditya Birla's Life insurance. Let's continue.

Definition

A policyholder can terminate the life insurance before it reaches maturity by surrendering the policy to the insurance company. After the surrender process, the insurer pays a cash value which is called the policy's surrender value. However, not every Aditya Birla Life Insurance policy acquires a surrender value. Life insurance that is associated with some investment component like ULIPS, annuity, and endowment plans acquires a surrender value over time.

How Do I surrender my Birla Sun Life Insurance?

If you want to surrender the life insurance policy, you need to submit the reasons for surrender along with the surrender form to the nearest official branch of Aditya Birla Sun Life Insurance. You can download this surrender form from the official website of the company or from the nearest branch of Aditya Birla.

Follow the steps mentioned below-

  • Visit the official website or the nearest branch office of Aditya Birla Life Insurance.
  • Collect the form.
  • Fill out the form along with the reason for your surrendering the policy.
  • Submit the form along with all the documents.
  • Wait for 10 to 15 working days for approval and surrender value to be credited afterward.

Documents Required

To surrender your Aditya Birla Life Insurance policy, you need the following documents handy-

  • Original policy documents.
  • A canceled cheque with the name of the policyholder on it.
  • The bank passbook copy or bank statement having the pre-printed name and account number.
  • ID Proof- PAN card, Aaadhaar Card, Passport, Driving License, Voters ID)
  • Duly filled policy surrender form
  • Latest contact details
  • NRE bank statement reflecting any premiums paid from the NRE account.

Charges for Surrender

Usually, life insurance companies will charge a certain percentage of the total premiums paid up to the surrender date if you decide to cancel the policy before maturity. This percentage varies from company to company. This charge is the amount the insurance company charges to manage the policy. Moreover, you can waive the surrender charge if you inform about canceling the INSURANCE POLICY in advance.

For life insurance policies like the annuity plans, the charge for discontinuity charge or surrender charge is about 10% of the funds that are contributed to the contract within the first year, it is effective. For the following years, the surrender fee dropped down close to 1%.

Types of Surrender Value and How to Calculate It?

There are two types of surrender values-

  • Guaranteed Surrender Value
  • Special Surrender Value

Let us understand each one of them-

Guaranteed Surrender Value

GSV, also known as Guaranteed Surrender Value is the percentage of the total premiums paid, except the first premium of the particular policy. This percentage is also known as the Guaranteed Surrender Value Factor. It usually depends on the year of surrender and can vary across the insurers and products.

GSV does not include any additional premiums paid for the riders. Also, any bonus you might have received from the insurance company is not included.

How to calculate GSV?

Check out the formula-
GSV=(GSV Factor x Total Premiums Paid)+(GSV Factor x Accrued Bonuses or Paid-up Additions)-(Already Paid Survival Benefits)

Special Surrender Value

Also known as non-guaranteed surrender value. It is the type of surrender value that reflects the actual market value of the investments and is determined periodically by the company itself. Most of the time, it is equal to or higher than GSV.

It has to be noted that SSV is not guaranteed and can asked for revision by the insurer on the following basis-

  • Sum Assured
  • Bonus
  • Policy Term
  • Premiums Paid
  • Changing investment returns
  • Market values of underlying assets like stocks, commodities, and much more.
  • Demographic experience and other factors.

How to Calculate SSV?

SSV=[Original Sum Assured x (Number of Premiums paid/Number of Premiums payable)+Total bonuses received]x Special Surrender Value Factor.

Aditya Birla Life Insurance Contact Details

For any further assistance, you can directly reach out to a customer care representative of Birla Sun Life Insurance company on the details given below-

Call- 1800 270 700 (India); +91 22 66917777 (International)

Email- care.lifeinsurance@adityabirlacapital.com

Mailing Address-

One Indiabulls Centre Tower 1, 16th Floor, Jupiter Mill Compound, 841, Senapati Bapat Marg, Elphinstone Road, Mumbai- 400013.

Aditya Birla Life Insurance Policy Surrender: FAQ's

1. How to calculate the surrender value of Aditya Birla Sun Life Insurance?

The surrender value of Aditya Birla Sun Life Insurance policy is calculated as a single premium multiplied by 75% of the outstanding term to the total term.

2. How can I close my Aditya Birla Policy?

You need to submit a written request for your Aditya Birla Health Insurance Policy cancellation, also write the reason of canceling the policy.

3. What is surrender value at maturity?

It is the amount that the insurance company pays to the policyholder when they decide to close or terminate the plan before maturity.

4. What is the surrender period?

The surrender period is the time frame in which an investor cannot withdraw the funds from their annuity without paying the surrender fee.

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Simran Kaur Vij

Written By: Simran Kaur Vij

Simran is an insurance expert with more than 3 years of experience in the industry. She may have all the answers to your insurance queries. With a background in Banking, she proactively helps her readers to stay on par with all the latest Insurance industry developments.