If you are planning to surrender your LIC policy and want to know the surrender value, this can be confusing. To help our readers, we have a calculator that efficiently calculated the Surrender Value Life Insurance Corporation of India Policy holders policy.
This LIC Policy Surrender Value Calculator is as per the Latest IRDAI Norms that are effective from 1 April 2024 onwards.
LIC Policy Surrender Value Calculator 2024
Many people think how much amount will i get if i surrender my policy after 3 years or 5 years or 10 years or more. To understand this, you can go through the details given in the article and use our calculator.
To calculate the surrender value of your LIC Policy, you need to Provide your LIC Policy Premium Amount (Amount you Pay per year under the Policy) and Number of Premiums you have already paid. If you want to calculate the Surrender value after five years, Simply provide the premium amount and then choose the number of premiums paid as 5. Finally, hit the “Calculate Surrender Value” button to check the value. You can click on the “Reset” button to clear the fields.
ALSO TRY – LIC Policy Bonus Calculator
Minimum Period for LIC Policy Surrender
Earlier as per LIC norms, The policy premiums for Minimum 3 Years had to be paid in order to Surrender the LIC Policy. However, as per new updates by IRDAI, You can surrender your policy after 1st Year (premium should be paid).
The Surrender value you get from your LIC Policy depends on when you are going to Surrender the policy. The later you do that, the more Surrender value you get.
LIC Policy Surrender Table
Here is the table as per the IRDAI’s latest Policy Surrender regulations. Using this table, you can find the applicable Surrender Value percentage based on the current year your Policy is in.
| Policy Year | Guaranteed Surrender Value |
| 2nd year | 30% of Total Paid Amount as Premiums |
| 3rd Year | 35% of Total Paid Amount as Premiums |
| Between 4 to 7 years | 50% of Total Paid Amount as Premiums |
| Last 2 years | 90% of Total Paid Amount as Premiums |
Guaranteed vs Special Surrender Value
There are two Surrender values, One is Guaranteed Surrender Value and Other is Special Surrender Value. Guaranteed Surrender Value is the minimum surrender value that you will get. In our calculations above, we provide you the Guaranteed Surrender Value.
The Special Surrender value is the Final Surrender Value that is calculated by Adding accumulated Interest or Bonuses. For Final Surrender Value, you can refer to the LIC Surrender Value Factor table section in your policy document or LIC Policy Brochure.
Here is a sample Surrender Value Factor table from old LIC Policy. For your particular policy, these values can be different.
If you plan to surrender your policy towards the end of the Policy period, you will get more surrender value and vice versa.
Calculator for LIC Policy Surrender : FAQs
Why do people sometimes surrender their LIC Policy?
This can happen due to various reasons including Urgent Money requirement, Financial Crunch, Switching to Other Better investment option, etc.
What is the Guaranteed Surrender Value for your Policy?
The Guaranteed Surrender Value is the minimum value that the policy holder gets. This value doesn’t take into consideration the accumulated interest and bonuses (if any).
Is Surrendering a policy good option?
This depends on the exact situation of the policyholder. My personal advise is to consider surrendering the policy as the last option.
What is LIC Surrender Value Factor?
The surrender value factor is a percentage of the paid-up value plus the bonus. It starts at zero for the first three years and then increases every year after that. You will find it in your Policy document and policy brochure.
What are some of the most popular LIC Policies?
Some of the most popular ones are Jeevan Umang, Jeevan Anand, Money Back policies, Bima Jyoti, Jeevan Utsav etc.
Quick Links
| LIC’s Website | Visit Now |
| IRDAI’s Announcement of Surrender Values | Read Here |
| Other LIC Calculators | Check Here |