Common use of Guaranteed Surrender Value Clause in Contracts

Guaranteed Surrender Value. 8.4.1. The Guaranteed Surrender Value will be determined in the Policy Year in which the surrender is effected, as a percentage of the total Premiums received and applied by Us on or after the due dates, in accordance with the table below, plus guaranteed cash value of accrued Paid Up Additions, if any, which have not been withdrawn by You. The guaranteed cash value of accrued Paid Up Additions is based on guaranteed cash value rates which are determined by Us in consultation and approval from the Authority and which are different from the Paid Up Addition purchase rates as mentioned in Section 3.5.1.1(iii)(c)(4). For example: A customer of Age 50 (Fifty) years bought this Policy. The Policy Term will be 50 (Fifty) years. Basis the year of surrender, the Guaranteed Surrender Value will change as follows: - Guaranteed Surrender Value in 10th Policy Year = Minimum of [{50% + ((40% X (10-7)) / (50 - 8))} or 90%)] = 53% of total Premiums received plus guaranteed cash value of Paid Up Additions (if any). - Guaranteed Surrender Value in 25th Policy Year = Minimum [{50% + ((40% X (25-7)) / (50 - 8))} , 90%] = 67% of total Premiums received plus guaranteed cash value of Paid Up Additions (if any). - Guaranteed Surrender Value in 49th Policy Year = Minimum [{50% + ((40% X (49-7)) / (50 - 8))} , 90%] = 90% of total Premiums received plus guaranteed cash value of Paid Up Additions (if any).