LIC Surrender Value Calculator: How to Estimate Your Policy’s Surrender Value and Make Informed Decisions
November 8, 2025
Life Insurance Corporation of India (LIC) offers a range of life insurance options that offer tranquility. But, should you decide to leave the policy before it reaches maturity knowing your insurance policy’s amount of surrender is essential. It is important to know that the LIC Surrender Value Calculator is a vital tool that will help you determine the amount you’ll get in the event that you decide you want to sell to surrender your LIC policy. This article will discuss the significance of using the LIC valuation calculator and how to utilize it, and the elements that impact the value of surrendering you LIC policy.
What is the LIC Surrender Value Calculator?
This LIC valuation calculator for surrender is a tool online that is provided by LIC as well as other reputable insurance sites. Calculates the value of surrender that your plan offerswhich is the amount you’d get if you choose to end your policy prior to the expiration date. The surrender value is composed from both the guarantee surrender value (GSV) and the special value for surrender (SSV), which includes the accumulated bonus (if there are any).
Utilizing this calculator, you can get an instant estimation of the amount you might receive. This calculator will help you decide if it is financially viable, or if it is more beneficial to keep the policy in force for the entire term will be more beneficial.
How Does the LIC Surrender Value Calculator Work?
To utilize the LIC calculator for surrender value it is necessary to provide specific details regarding the details of your LIC policy. Calculators use these inputs to calculate an estimation of the surrender value based upon the amount of premiums you have paid, the sum assured, and amount of time you’ve paid your premiums.
Here are the main elements required for input:
| Input | Why It Matters |
|---|---|
| Policy Term | The term of the insurance policy (e.g. 15 25, 20, 15 years). A longer duration usually will result in a higher value of surrender. |
| Premium Paid | The total amount of premiums you’ve paid to date. The more premiums you’ve paid for more, the higher the surrender value you could get. |
| Sum Assured | The amount that the policy promises to pay on death or at the time of maturity. |
| Number of Premiums Paid | The number of premiums that you have paid to date up to the date you surrender. The majority of policies need at minimum 3 years of premiums in order to qualify for surrendering eligibility. |
| Policy Type | The kind of policy (e.g. endowment or money-back) can affect the surrender value calculation. |
| Bonuses (if relevant) | Certain policies, such as participation plans, allow bonuses to accumulate that are then added to the value of the surrender. |
Inputting these information into the calculator for the surrender value of LIC It is easy to determine the value of the surrender as well as any possible bonus (if appropriate).).
Steps to Use the LIC Surrender Value Calculator
Utilizing the calculator to calculate the value of surrenders on LIC is straightforward and can be completed in just a few steps
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Check out on the LIC Surrender Value Calculator page You can locate the calculator on the official website of LIC or on reputable third-party insurance portals.
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Enter Your Policy Information Enter the necessary information, such as the policy’s term, premium paid, the amount assured, and the amount of premiums you’ve paid.
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Click “Calculate” After entering all the information Click the “Calculate” button.
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Check the results The calculator provides an estimation on your amount of surrender and will show both the value that is guaranteed and the special surrender value (if relevant). It also provides the breakdown of the way that bonuses (if there are any) are a factor in this final figure.
Factors Affecting the LIC Surrender Value
Many factors can affect several factors that affect the value of the surrender of an insurance policy. A variety of factors influence the LIC surrender value of a. Knowing these aspects will help you estimate what you can expect from the calculator to calculate the LIC surrender value:
| Factor | How It Affects the Surrender Value |
|---|---|
| Policy Term | A longer term in a policy generally implies a higher value for surrender due to the fact that more premiums are paid, and more bonuses are accrued. |
| Premium Payment Duration | The higher the amount of premiums you’ve paid in the past, the higher your value of your surrender, especially in the event that you’ve paid over many years. |
| Bonuses Accumulated | Participating policies earn bonus points that are added to surrender value. The policies that don’t participate typically do not accumulate bonuses. |
| Policy Type | Endowment policies could have higher surrender values as compared to term-insurance policies because of their savings element. |
| Time Lapse | Policyholders who have had their policies in effect for a number of years have more value for surrender than policies that just been bought. |
Example: Estimating Surrender Value Using the LIC Surrender Value Calculator
Let’s look at the example below to get a better understanding of what the calculator for the surrender value on LIC functions.
Assume that you own an LIC Jeevan Anand policy that has the following information:
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Age 40 years old
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Sum Assured: Rs10,00,000
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Policy Time 20 years
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Premium Paying Duration 15 years
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High-end Paid The cost is Rs50,000 per year.
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5 years of Premiums Paid 5 years
When you input these data into the calculator for the surrender value of LIC This tool may give you some of the results below:
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Guaranteed Surrender Value: Rs1,75,000
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Special Surrender Price of Rs. 220,000 (includes the accrued bonus)
This example demonstrates how the calculator will provide an estimation of the value of surrender which is the amount you’d get if you decide to terminate the policy following five years of premium payment.
Pros and Cons of Surrendering Your LIC Policy
Pros
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Access to funds In exchange for surrendering your policy, it allows you to access immediately the funds you’ve earned from premiums, in particular when you’re facing financial difficulties.
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Lowers the financial burden for the future If you’re not able to pay your premiums in the future and you’re in a position to surrender, it could be a better choice instead of letting the policy expire.
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Tax benefits If you do be unable to claim the maturity or death benefit, you will still benefit from tax benefits for the premiums you have paid up to the date of surrender.
Cons
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Lower Value of Surrender in the initial stages of the policy the surrender value will typically be lower than the premiums that you’ve paid.
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Death of the Life Insurance In surrendering the policy you forfeit your life insurance coverage and leave your beneficiaries without protection in the event of your premature death.
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Bonuses aren’t guaranteed The calculator takes into account bonuses that alter over time, so the actual value of your surrender could differ.
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When Should You Consider Surrendering Your LIC Policy?
Although reselling your insurance policy is an option, it should be considered in the following circumstances:
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financial hardship If you’re not able to pay your fees due to financial difficulties and you are unable to pay, surrendering your account could give you immediate cash.
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Alternate Investment Opportunities If you’ve discovered an investment strategy that offers better returns, resigning your LIC policy can free up funds.
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Paid-up option If you’ve already paid premiums for a while but you want to stop any further payments, changing the policy to an enrolled policy is more beneficial rather than surrendering.
Conclusion
This LIC yield value calculator is a helpful tool for anyone who is considering the possibility of reselling the LIC policy. It gives an estimation of the value of surrender that will help to make a well-informed decision in light of your financial circumstances and objectives. Before you surrender your policy, it is important to consider both the advantages and disadvantages with care. You should consult with an LIC representative or financial adviser for a better understanding of the implications in full and consider possibilities like changing your policy to an e-pay-up policy.
Utilizing the calculator to calculate the value of your LIC’s surrender is a great initial step to evaluate your options and establishing your financial goals.
Learn more about LIC surrender value calculator on PolicyBazaar