LIC Policy Surrender Value Calculator Online [Check Amount Easily]

LIC Surrender Value Calculator Online

Calculate the surrender value of your LIC insurance policy quickly and easily.

LIC Surrender Value Calulator Online

Life insurance is a long-term commitment, but life itself can be unpredictable. Sometimes, you may find yourself in a situation where continuing your policy no longer aligns with your financial needs or goals. That’s where the LIC Surrender Value Calculator comes in — a handy, easy-to-use online tool designed to help you make informed decisions about your insurance.

What is Surrender Value in LIC Policy?

When you choose to surrender your LIC (Life Insurance Corporation of India) policy before its maturity, LIC offers a payout known as the surrender value. This is the amount you receive if you decide to discontinue your policy prematurely.

However, it's essential to understand that this amount is not equal to the total premiums you’ve paid. Instead, LIC calculates the surrender value based on multiple factors such as:

The type of LIC policy (Endowment, Money Back, etc.)
The number of years the policy has been active
The total premiums paid (excluding taxes and rider premiums)
LIC’s surrender value factors and internal guidelines

Generally, a policy acquires a surrender value only after completing at least 3 years of premium payments. The longer you stay invested in the policy, the higher the surrender value you may receive.

Understanding the surrender value helps you make informed financial decisions — whether to continue your LIC policy or opt for early exit based on your current needs.

How LIC Calculates the Surrender Value of a Policy

The surrender value of an LIC policy is the amount payable to the policyholder if they decide to terminate the policy before its maturity. LIC uses a standard formula to calculate this amount, but the final value depends on various conditions like policy type, premium payment term, and duration completed.

LIC Surrender Value Calculation Formula:

Surrender Value = (Guaranteed Surrender Value + Special Surrender Value, if applicable), There are usually two types of surrender values:

1. Guaranteed Surrender Value (GSV)

This is the minimum amount you are entitled to after paying premiums for at least three years.

GSV = (Total Premiums Paid – Rider Premiums and Taxes) × GSV Factor (%)

GSV Factor is determined by LIC and increases with the number of years the policy has been in force.

Premiums paid for add-on riders (e.g., accidental benefit, critical illness) and taxes are not included in the calculation.

2. Special Surrender Value (SSV)

LIC may offer a higher surrender value under certain policies, known as the Special Surrender Value. It is usually offered when the policy has run for a longer duration and has accumulated bonuses.

SSV = (Paid-up Value + Bonus) × SSV Factor
Paid-up Value = (Sum Assured × No. of Premiums Paid) ÷ Total Premiums Payable
Bonus = Accrued reversionary bonuses declared by LIC

SSV Factor is decided by LIC and varies based on policy duration and terms.

Key Points to Remember:

A policy must complete at least 3 years of premium payment to be eligible for surrender value.
The longer the duration and the higher the premiums paid, the higher the surrender value.
LIC calculates both GSV and SSV and pays whichever is higher at the time of surrender.
Policies like single premium and limited premium plans have different surrender rules.

Understanding how LIC calculates surrender value gives you better clarity on what to expect if you’re considering exiting your policy early. It’s always wise to use a Surrender Value Calculator or consult with your LIC advisor for an accurate estimate based on your policy details.

How Does the LIC Surrender Value Calculator Help?

The LIC Surrender Value Calculator makes it easy to estimate how much money you might get back if you decide to surrender your policy. Instead of going through confusing documents or waiting in line at your insurer’s office, you can simply enter a few key details such as:

Annual premium amount
Total policy term
Number of years the policy has been active

Based on this information, the calculator gives you a close estimate of your policy’s surrender value. It helps remove the guesswork, saving you time and helping you make better financial decisions with confidence.

Why Use the LIC Surrender Value Calculator?

The LIC Surrender Value Calculator is a valuable tool for policyholders who are considering ending their policy before maturity. It saves you the trouble of visiting a branch office or waiting on hold with customer service. With just a few clicks, you can get an estimate of how much you might receive if you choose to surrender your policy.

One of the biggest advantages of using this calculator is the speed and simplicity it offers. You don’t need to go through complex paperwork or calculations. Just enter a few basic details like your premium amount, policy term, and number of years completed — and the calculator does the rest in seconds.

This tool also supports better decision-making. By giving you a quick estimate of your policy’s current value, it helps you compare your options — whether that’s continuing with your LIC policy, surrendering it, or using the amount for other investments or needs.

Finally, it aids in financial planning. If you're facing a financial crunch or simply want to re-evaluate your insurance portfolio, knowing your surrender value upfront allows you to plan accordingly. It provides clarity and confidence to make informed choices about your financial future.

Losses for Surrendering LIC Policy

If you decide to close (surrender) your LIC policy before it ends, you may lose money. You will not get back all the premiums you have paid. In most cases, LIC gives back only around 30% of the total premiums, and that too only after 3 years. Also, the first year’s premium is usually not counted in this return.

Another big loss is the bonus amount. LIC policies earn bonuses over time, but if you surrender early, you may not get any bonus or get only a small part of it. So, you miss out on extra money that would have come with time.

Also, your life insurance cover will stop. This means if something happens to you after surrendering, your family will not get any claim money. Once you surrender, you cannot restart the same policy. If you try to buy a new one later, it may be more expensive because you’ll be older.

Sometimes, you may also have to pay tax on the amount you get from surrendering, especially if it’s more than what you paid in premiums.

LIC allows you to surrender only after 3 years of regular payment. If you stop before 3 years, you may get nothing at all.

Before you take this step, it's better to think about other options. You can make your policy paid-up, which means stop paying premiums but still keep some insurance cover. You can also take a loan on your policy if you need money urgently.

In short, surrendering your LIC policy may give you less money and no insurance cover, so think carefully and talk to your LIC agent before you decide.

Things to Keep in Mind

While the LIC Surrender Value Calculator is a useful tool for getting a general idea of your policy's worth, it’s important to understand that the calculated amount is only an estimate, not the exact final payout. The actual surrender value can vary depending on several factors such as LIC’s internal policies, applicable charges, and the type of policy you hold.

LIC may deduct certain fees or charges at the time of surrender, and these can influence the final amount you receive. Additionally, surrender value factors and bonus calculations may differ based on how long you've held the policy and the terms agreed upon at the time of purchase.

Also, please note that this calculator is not an official tool provided by LIC of India. It is an independent, simplified tool designed to help you estimate your surrender value. For the most accurate and up-to-date information, it’s always recommended to check directly with your LIC branch or authorized agent before making any final decisions.

Using the calculator is a great first step for financial planning, but make sure to confirm the exact figures with LIC to avoid surprises.

Final Thoughts

Whether you're planning to surrender your policy or just exploring your options, the LIC Surrender Value Calculator is a practical tool to have. It empowers you to understand the potential financial outcome of your decision and ensures you're not caught off guard. Think of it as a first step in reassessing your insurance portfolio with clarity and confidence.

FAQs

Question 1: What is a Surrender Value Calculator for LIC Policy?

A Surrender Value Calculator helps you estimate the amount you will receive if you decide to surrender your LIC policy before the maturity date. It calculates the surrender value based on the policy details and the premiums paid so far.

Question 2: How is the surrender value of my LIC policy calculated?

The surrender value is determined by several factors, including the type of policy, the premiums paid, the policy's duration, and the bonus declared by LIC. It is generally a percentage of the policy's paid-up value.

Question 3: Can I calculate the surrender value online?

Yes, LIC provides an online surrender value calculator that can help you estimate the value based on your policy details.

Question 4: Will I get the same surrender value as calculated online?

The estimated value shown by the online calculator is an approximation. The actual surrender value will be calculated by LIC based on their internal procedures and may vary slightly.

Question 5: When should I consider surrendering my LIC policy?

Surrendering your LIC policy is an option if you no longer need the coverage or are facing financial difficulties. However, it is advisable to evaluate the surrender value and compare it with the benefits of continuing the policy.

Question 6: Are there any penalties for surrendering my LIC policy early?

Yes, surrendering your policy before the maturity date may result in a lower surrender value, and you may lose some of the benefits like bonuses. It's important to carefully consider the decision before proceeding.

Question 7: Can I withdraw the surrender value of my LIC policy without cancelling it?

Yes, you can opt for a partial surrender if allowed by your LIC policy, which will enable you to withdraw a portion of the surrender value without completely cancelling the policy.

Question 8: How long do I need to pay premiums to get a surrender value?

The surrender value is available once the policy has acquired a certain number of paid premiums. This varies by policy type, and you can check with LIC for specific terms for your policy.

Question 9: Can I surrender my policy if it is in a paid-up status?

Yes, if your policy is in a paid-up status, you can surrender it to receive the applicable surrender value. However, paid-up policies typically have a reduced benefit amount.

Question 10: Will I lose my coverage if I surrender my LIC policy?

Yes, surrendering your LIC policy will terminate the coverage and you will no longer be eligible for any benefits. It is important to consider all options before deciding to surrender your policy.

Disclaimer:

The tools and calculators on this website are meant to give you an idea of certain values or information. The results you get are based on the information you provide and may not be completely accurate or final. Things like rules, terms, or policies can change, which may affect the results.

We are not responsible for any mistakes in the information, and we can't guarantee the results. If you need precise or official advice, it's always a good idea to check with a professional or the service provider directly.

By using these tools, you agree that the information is given as is, and we don't promise that the results will always be correct or reliable.