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 less Extra Premium (if any)] received and applied by Us on or after the due dates, in accordance with the table below, less any survival benefits already paid by Us plus guaranteed cash value of accrued Paid-Up Additions, if any, which have not been withdrawn by You.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 3.6.2 (iii) (c) (4). Policy Year of surrender Percentage (%) of [total Premiums less Extra Premium (if any)] received (subject to the condition that Premiums for the first 2 (Two) Policy Years or first 3 (Three) Policy Years, as the case may be, having been received and applied by Us, in accordance with the Section 8.1) 8 onwards Minimum of [ { 50% + ( (40% X (N-7)) / (Policy Term - 8) ) } or 90% ] Wherein N is the Policy Year of Surrender For example: A customer of Age 50 (Fifty) years bought this Policy. The Policy Term will be 25 (Twenty Five) 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)) / (25 - 8) ) } or 90% ] = 57% of total Premiums received less any survival benefits already paid plus guaranteed cash value of accrued Paid-Up Additions (if any) which have not been withdrawn by You. - Guaranteed Surrender Value in 24th Policy Year = Minimum of [ { 50% + ( (40% X (24 - 7)) / (25 - 8) ) } or 90% ] = 90% of total Premiums received less any survival benefits already paid plus guaranteed cash value of accrued Paid-Up Additions (if any) which have not been withdrawn by You. - Guaranteed Surrender Value in 25th Policy Year = Minimum [ { 50% + ( (40% X (25 - 7)) / (25 - 8) ) } or 90% ] = 90% of total Premiums received less any survival benefits already paid plus guaranteed cash value of accrued Paid-Up Additions (if any) which have not been withdrawn by You.