Most of the people who buy any LIC policy never really want to surrender it. However, due to some unpredictable situations people need to surrender their policies. Ultimately this is their money and if the policy has the surrender option, the customer can surrender it. However, many people debate that surrendering an LIC policy is a foolish decision and the policyholder will face great loss if he/she does it. Well, let me tell you that there have been significant changes in how much Surrender Value amount the policyholder will get. As per the recent IRDAI norms, the customer will not face significant loss if he/she surrenders the policy.
This article is going to give you complete information regarding LIC Policy Surrender. To help the people who are planning to surrender their LIC policies, we have developed this most accurate LIC Policy Surrender Value calculator which finds the Guaranteed Surrender Value also known as GSV. Our calculator takes care of each and every aspect and provides the policy holders correct Surrender Value.
Surrender Value Calculator for LIC Policy
In those cases when the policy holder has decided to surrender LIC policy, the first question that comes in mind is : what is the surrender value of my lic policy? To accurately answer this question, the policy holder needs to do a lot of research. He needs to go through his policy document first, get key information from there, then manually do calculations and even a small mistake will result is getting the wrong and misleading surrender value.
That’s why you should use our LIC Policy Guaranteed Surrender Value Calculator. This 100% free calculator after taking few inputs from you provide you with the surrender value. Let’s discuss how to use the calculator.
If you would like to read the details later on and want to try to Calculator right now, Jump to the Calculator section directly.
What is Surrender Value?
The Surrender Value of a life insurance policy is the amount the policyholder receives from the insurance company if they decide to terminate the policy before its maturity date. The surrender value is calculated based on the premiums paid, the duration the policy has been active, and specific terms outlined in the policy.
Key Components of Surrender Value:
Guaranteed Surrender Value (GSV):
This is the minimum amount the insurance company guarantees to pay upon surrender.
It is typically a percentage of the total premiums paid (excluding any taxes, rider premiums, or extra charges).
Special Surrender Value (SSV):
This is often higher than the Guaranteed Surrender Value.
It depends on factors like the policy’s accumulated bonuses, the policy’s term, and how long it has been active.
Factors Affecting Surrender Value:
👉 Type of Policy: The Surrender value depends on the type of plan i.e. traditional plans, ULIPs, endowment plans, and whole life policies.
👉 Policy Term: Longer-duration policies usually get higher surrender values.
👉 Premium Payment Duration: Policies that have been paid for a longer period have higher surrender values.
👉 Bonuses (if applicable): Some policies add bonuses that enhance the surrender value.
General Rules:
➡️ Policies typically acquire a surrender value after a minimum number of defined years . (1 year for Special Surrender Value, 2 years for Guaranteed Surrender Value)
➡️ Surrendering a policy early often results in a lower payout as compared to the total premiums paid.
➡️ Surrendering may lead to loss of life insurance coverage and future benefits like maturity proceeds or bonuses.
Example:
For a traditional endowment plan:
- Premium Paid: ₹1,00,000 per year for 3 years.
- Guaranteed Surrender Value Factor: 30% (for Policy Year 3).
- Calculation: GSV = 30% × (Total Premiums Paid – Taxes/Rider Premiums).
- Payout: ₹90,000 (assuming no deductions).
Do note that the Guaranteed Surrender Value Factor changes based on Policy Type, Policy Year etc. So, it’s not a good idea to generalise this calculation because that may result in incorrect values. That’s why our LIC Surrender Value calculator does policy specific calculations .
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.
LIC Surrender Value Calculator 2025
Quickly calculate your Guaranteed Surrender Value
How to Use This Surrender Value Calculator
The calculator above helps you to easily calculate the Guaranteed Surrender Value (GSV) for LIC Policies. To use this calculator, you need to first of all, select the Policy name from the Dropdown. Then you need to Select the Year when you availed the policy, then you can enter the Policy Term . You can easily get these details from your policy document if you have it handy. After this you have the option to choose how the payment frequency i.e. when do you pay the Premium frequency. Do you pay it Monthly, Quarterly, Half Yearly (Semi Annually) or Yearly. Then Enter the Premium Amount. After you enter this, Simply hit the Calculate button to find the Guaranteed Surrender Value (GSV).
ALSO TRY – LIC Policy Bonus Calculator
Minimum Period for LIC Policy Surrender
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
Below is the generalized LIC Policy Surrender Value table. Do note that every policy has a dedicated surrender value chart, that you can refer to if you want correct calculations. However, this table below can also help to find approximate Surrender value.
| 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.
When you surrender your Policy, after comparing the Guaranteed Surrender Value and Special Surrender Value, you are given the amount which is more. For example, if the Special Surrender Value (SSV) is found to be more than Guaranteed Surrender Value (GSV), you get that as Surrender amount and vice versa. The calculation of Special Surrender Value is based on the SSV factor that is defined by IRDAI and is updated every year.
You can know more about this by Reading IRDAI (Insurance Products) Regulations 2024 . You should study the official document to know more about the Surrender Value Calculation and how Special Surrender Value (SSV) and Guaranteed Surrender Value (GSV) are considered.
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
Quick Links
| LIC’s Website | Visit Now |
| IRDAI’s Announcement of Surrender Values | Read Here |
| Other LIC Calculators | Check Here |