To calculate your insurance policy's surrender value, typically LIC policy surrender value, we have designed the calculator below. We are here to provide you with a unique LIC surrender value calculator online. Use the calculator below to check the surrender value of your LIC policy.
LIC policy surrender value calculator
LIC policy's surrender value depends upon what kind of LIC policy you hold and for how many years you have paid the premium. You can calculate surrender value for various plans of lic like LIC's Bima Jyoti, LIC's Bima Ratna, LIC's Dhan Sanchay, LIC's Jeevan Azad, LIC's Dhan Vriddhi,LIC's Single Premium Endowment Plan. LIC's Jeevan Lakshya, LIC's Jeevan Labh, LIC's Aadhar Stambh, LIC's Aadhar Shila, LIC's New Endowment Plan, LIC's New Jeevan Anand, LIC's Jeevan Rakshak and many more. we have referred multiple policy documents given to policy holder. And based on policy document we have developed LIC surrender value calculator online.
The formula for calculating Guaranteed LIC policy Surrender Value is
(Total paid Premium – First year Premium – Tax and Riders) X (Surrender Value Factor)
Surrender Value factor varies from 30% at second year of policy to 90% at thirty five year of policy. You can refer LIC surrender value chart below.
LIC Surrender Value Chart
| Policy Year | Factor |
|---|---|
| 1 | 0.00% |
| 2 | 30.00% |
| 3 | 35.00% |
| 4 | 50.00% |
| 5 | 50.00% |
| 6 | 50.00% |
| 7 | 50.00% |
| 8 | 51.48% |
| 9 | 52.96% |
| 10 | 54.44% |
| 11 | 55.93% |
| 12 | 57.41% |
| 13 | 58.89% |
| 14 | 60.37% |
| 15 | 61.85% |
| 16 | 63.33% |
| 17 | 64.81% |
| 18 | 66.30% |
| 19 | 67.78% |
| 20 | 69.26% |
| 21 | 70.74% |
| 22 | 72.22% |
| 23 | 73.70% |
| 24 | 75.19% |
| 25 | 76.67% |
| 26 | 78.15% |
| 27 | 79.63% |
| 28 | 81.11% |
| 29 | 82.59% |
| 30 | 84.07% |
| 31 | 85.56% |
| 32 | 87.04% |
| 33 | 88.52% |
| 34 | 90.00% |
| 35 & Above | 90.00% |
If you have added riders to your policy your surrender value may differ. Simplest way of finding exact surrender value for your policy is by calling LIC call center +91-02268276827. Process of LIC policy surrender is simple, you can get LIC policy surrender form at any branch (LIC BIMA) or ask From LIC insurance Advisor. You can just fill in LIC policy surrender form and submit at branch office. However LIC policy surrender online is yet not possible.
There are a few reasons why you should know the surrender value of your policy. Here, we discuss the major reasons. The first reason is if you have to take a loan against your policy. LIC will give you a loan against your policy. How much loan you get depends on the surrender value of your policy. Generally, LIC allows you to loan 70 to 90 percent of your surrender value. More information on your specific needs can be found in your policy document. Another reason why you should know the surrender value of your policy is if you have to discontinue it. The amount you can get from the LIC depends on the surrender value of your policy. You will get an amount equal to the surrender value of your policy. Once you discontinue your policy, you can invest the amount received from surrendering it into some better investment option, or you can also consider converting your policy into a paid-up policy.
Frequently Asked Questions (FAQ's)
All your premiums paid till date minus 1 year's premiums and if you have chosen a few riders in policy at the time of taking the policy then the premiums paid for all the riders will also be minus and taxes will be deducted and then this value will be multiplied with surrender value factor.
You will get 30% of the premiums paid till now which will not include the premium for the 1st year of your policy. Along with that, if you have added any rider then the premium paid for them will also be deducted from this amount. And you will not get back the taxes you have paid during this period. This is also called guaranteed surrender value.
You will get 50% of the premiums paid till now which will not include the premium for the 1st year of your policy. Along with that, if you have added any rider then the premium paid for them will also be deducted from this amount. And you will not get back the taxes you have paid during this period.
You will get 55% of the premiums paid till now which will not include the premium for the 1st year of your policy. Along with that, if you have added any rider then the premium paid for them will also be deducted from this amount. And you will not get back the taxes you have paid during this period.
If you invest the amount received after surrendering the policy somewhere, you will get good compounding returns. It may be right to surrender your policy. Else You can also get it converted into paidup policy.
This can be a good decision if you understand the time value of money. And after surrendering the policy, invest the amount you get in mutual funds. In this case you will get better returns however you will loose policy cover.
You will lose all the insurance covers you got while purchasing the policy. Another disadvantage of surrendering policy is, If you want to purchase new insurance policy or Lic policy after some time you will have to pay higher premium as compared to current one.
Your policy will get converted into paid-up policy. Your policy cover will be reduced to the amount of premiums you have paid for 10 years. And you will get your paid premium amount after the end of the policy term.
In Paid up policy Your policy cover will be reduced to the amount of premiums you have paid till date and if you still want policy cover paid up is good option. Surrendering can be a good decision if you understand the time value of money. And after surrendering the policy, invest the amount you get in mutual funds.
You can visit any LIC branch in india. Get surrender Discharge voucher. fill in all necessary details submit it to LIC branch along with required documents.
Surrender value for endowment plans of lic is tax-free.