Surrender Value of SBI Life Smart Bachat Plan - Check your surrender value

Surrender Value of SBI Life Smart Bachat Plan

If for some reason, you wish to surrender your SBI Smart Bachat Plan, the tables below will show the amount that will be returned back to you. You will need the Surrender Value Factors which are mentioned below to know the exact amount. You get back a part of the premium paid by you. So here is how it works. 

Note - The tax components and the premiums for riders are not returned if you surrender this plan. The % is on the basic premium without tax.

Surrender Value Factors for the premiums paid
 

Surrender Year	Policy Term (years)
	PPT = 5 & 7 years	PPT = 10 & 15 years
1	0%	0%
2	30%	0%
3	40%	30%
4 - 7	50%	50%
8 - 10	55%	55%
11 - 15	60%	60%
16 - 20	65%	65%
21+	70%	70%

PPT - Refers to the Premium Payment Term


Surrender Value Factors for the Bonus accrued

The vested bonus also acquires a Surrender Value and is paid out when you surrender the plan.
 

Surrender Year	Surrender Value Factor
1	7.35%
2	7.98%
3	8.70%
4	9.51%
5	10.43%
6	11.46%
7	12.63%
8	13.95%
9	15.44%
10	17.11%
11	18.99%
12	21.11%
13	23.50%
14	26.18%
15	29.19%
16	32.58%
17	36.38%
18	40.65%
19	45.44%
20	50.82%
21	56.85%
22	63.62%
23	71.21%
24	79.73%
25	89.29%

Let us understand how this works with the help of an example.

Suppose Ravi who is 3 years old has taken the SBI Life Smart Bachat Plan with a cover of Rs. 3,00,000 and a policy term of 10 years and PPT of 5 years. His Annual Premium was Rs. 56,331 + taxes. 

He paid the premium for 5 years. Now due to a financial crunch, he decided to surrender the plan after 7 years. He gets a Surrender Value for the Premium Paid and for the Bonus accrued the plan. This is the amount he will get on surrendering the plan.

Premium Paid so far = 5 x 56,331 = Rs. 2,81,655
Surrender Value Factor for premiums = 50% (marked in the blue in the 1st table)
Surrender Value of Premiums in SBI Life Smart Bachat after 7 years = Rs. 2,81,655 x 50% = Rs. 1,40,828 (A)

Bonus Accrued in 7 years = 7 x 15,000 = Rs. 1,05,000
Surrender Value of Bonus after 7 years = 12.63% (marked in the blue in the 2nd table)
Surrender Value of Bonus in SBI Life Smart Bachat after 7 years = Rs. 1,05,000 x 12.63% = Rs. 13,262 (B)

Total Surrender Value after 7 years = (A) + (B) = Rs. 1,40,828 + 13,262 = Rs. 1,54,090


This is the Guaranteed Surrender Value. A Special Surrender Value maybe paid by SBI Life  - this value can only be known at the time of actual surrender.

To know more about how this plan works - Read the SBI Life Smart Bachat Plan Review.

In case you have any questions on this, please drop a comment and we will get back to you.