Aditya Birla Sun Life Insurance Policy Surrender
- What is surrender value
- How to surrender
- Documents required
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.
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.
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-
To surrender your Aditya Birla Life Insurance policy, you need the following documents handy-
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%.
There are two types of surrender values-
Let us understand each one of them-
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)
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-
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.
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 Sunlife Fixed Maturity Plan is a non-linked, non-participating endowment product providing fully guaranteed benefits as a lump-sum on mat...
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An explorer and a curious person, Simran has worked in the field of insurance for more than 3 years. Travelling and writing are her only passion and hobby. Her main agenda is to transform insurance information into a piece that is easy to understand and seamlessly solves the reader’s query.
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