The tool allows policyholders with the Life Insurance Corporation of India to estimate the amount they would receive if they choose to terminate their policy before its maturity date. This estimation requires inputs such as the policy term, premium amount, and number of premiums paid. The resulting figure represents the potential return, which is typically less than the total premiums paid due to surrender charges and other factors outlined in the policy’s terms and conditions.
This estimation facility is important because it provides transparency and helps policyholders make informed financial decisions regarding their life insurance investments. Historically, surrender charges were often opaque and difficult to understand. The introduction of accessible calculators offers a clearer view of the potential financial implications of discontinuing a policy. Benefits include improved financial planning, a better understanding of policy value, and the ability to compare the surrender value against alternative investment options.
