How the surrender value is calculated in Met Life's Met Suvidha (Par) Policy?

[Rahul]

My cousin has this metlife suvidha par policy where this 26 years policy has 4 lakh face value and 3 lakh additional accidental death benefit.So total 7 lakhs in accidental case and 4 lakh for any other.The person pays 19000 approxmate yearly bonus upto 10 years and already 7 payments done and 8th is due on first week of march.

So far the guaranteed surrender value shown is 46000 something for 1 lakh 33000 premium paid.Also the bonus amount shown s 63000.

So say if my cousin surrenders the policy now will she get

1:: 46000=Guaranteed surrender value only.

2::63000=Bonus amount only.

3::46000+63000=99000 Both guaranteed and bonus amount ?

The Met Life's Met Suvidha (Par) Policy brochure doesn't talk about bonus (whether the bonus will also be paid during the surrender of the policy). I hope that they will only pay the Guaranteed Surrender Value to you. So it will be equal to 30% of the premiums paid, excluding first premium, any extra premium and rider premium, if any.

Annual Premium Amount - 19,000
Already Paid Premium for years - 7 Years

Total Premium Paid - (19,000 X 7) = 133,000

Deduct first year premium = (133,000 - 19,000) = 114,000
Guaranteed Surrender Value @ 30% Premium Paid (excluding first premium) - 114,000 X 30/100 = 34200*

*I am not getting the right amount (46,000) as mentioned by you above, where am I wrong?

[magnet]

The Met Life's Met Suvidha (Par) Policy brochure doesn't talk about bonus (whether the bonus will also be paid during the surrender of the policy). I hope that they will only pay the Guaranteed Surrender Value to you. So it will be equal to 30% of the premiums paid, excluding first premium, any extra premium and rider premium, if any. Annual Premium Amount - 19,000 Already Paid Premium for years - 7 Years Total Premium Paid - (19,000 X 7) = 133,000 Deduct first year premium = (133,000 - 19,000) = 114,000 Guaranteed Surrender Value @ 30% Premium Paid (excluding first premium) - 114,000 X 30/100 = 34200* *I am not getting the right amount (46,000) as mentioned by you above, where am I wrong?

I guess they are paying accrued bonus too with some % calculation with the amount which is somewhere around 63000 and than same. But doesnt this amount too look pity when compared to premium paid. If the policy is surrendered and the amount of 46000 and also unpaid premium of 57000 is placed under some mutual fund which gives 12% annual return even that will pay much more on maturity if invested now(somewhere 9 lakh 60000 whereas at 3% this policy will pay below 9 lakhs).

For insurance of 4 lakh i guess spending 3000 a year wont be a problem plus for 100 rupees you get 4 lakh rupee personal accident death cover if you have any bank account(sbi). Is it wise to surrender the policy and go for term insurance and investment elsewhere.
Because even the person can pay premium now.But say 10 years down the line some emergency happens and he needs to surrender the policy hardly a lakh and half or even less will be provided back.