How To check the Surrender Value of LIC Policies?

LIC surrender value is the sum payable to policyholders upon premature termination. It is calculated by deducting charges from the policy's cash value. Surrendering provides access to funds, but the value is typically lower than the premiums paid, especially in the early years.

Read more
Benefits of LIC Plans
Buy LIC policy online hassle free
Tax saving under Sec 80C & 10(10D)
High returns market link plans
Sovereign guarantee as per Sec 37 of LIC Act
LIC life insurance
Need Help?
If you have any service related query for LIC, Please visit LIC Customer portal
View LIC Portal
Need any Assistance in Buying New LIC Policy
Call Us at
LIC SIIP Plan1800-419-7717
We are rated~
6.7 Crore
Registered Consumers
Insurance Partners
3.4 Crore
Policies Sold
~Source - Google Review Rating available on:-
Now Available on Policybazaar
Grow your wealth with LIC
We don’t spam
View Plans
Please wait. We Are Processing..
Your personal information is secure with us
Plans available only for people of Indian origin By clicking on "View Plans" you agree to our Privacy Policy and Terms of use #For a 55 year on investment of 20Lacs #Discount offered by insurance company Tax benefit is subject to changes in tax laws
Get Updates on WhatsApp

What is LIC Surrender Value?

Surrender value is the money you get back if you end your LIC policy before it matures. It's a portion of the premiums you paid minus some charges, and you can check how much through the LIC surrender value calculator. This surrender benefit can be calculated through the LIC surrender value calculator. 

Let us understand the meaning of surrender value and how to calculate different surrender values.

The value is payable only after three full years of premiums are paid to LIC. The policyholder can opt to surrender his policy anytime he wants to. After the policy has been surrendered, the company pays the surrender value, leading to the termination of coverage.

Additionally, the corporation pays a special surrender value equal to or more than the guaranteed surrender value. There is currently no LIC surrender value calculator app on the official company platforms; however, it can be manually calculated as described in the following sections.

Types of Surrender Value

  • Guaranteed Surrender Value:

According to the LIC brochure: Guaranteed Surrender Value = 30% X Total premiums paid. The first-year premiums and all the added premiums or premiums for accident benefits or the term rider are excluded from the same.

How to Calculate Guaranteed Surrender Value?

For example, Harish has bought an LIC’s Jeevan Amar plan. The period of the policy is 20 years. He has to pay an amount of INR 35,000 inclusive taxes annually. After the third year, he wishes to surrender his policy. Now, since he is supposed to get some money, i.e., Guaranteed Surrender Value. It can be calculated as;

Percentage/surrender value factor *(initial amount*number of years he invested in)
= 30 %*( 35,000*3)
= INR 31,500

Percentage/ surrender value factor= 30%

Now, if Harish also has to get some vested bonuses, then the surrender value for vested bonuses will be calculated as,
A vested bonus must be paid to an insurer at the maturity of their policy. Suppose the bonus value for Harish’s policy is INR 65,000. Assume the percentage or surrender value factor for any accumulated bonuses, such as 18%. The surrender value can be calculated as;
The surrender value = percentage/surrender value factor (18%)*(accumulated bonuses)
= 18 %*( 65,000)
= INR 11,700

  • Special Surrender Value: It's a bit complex, but it ensures you get an amount equal to or more than the guaranteed surrender value. Calculated based on your paid-up amount, any bonuses, and a surrender value factor.

How to Calculate Special Surrender Value?

For example, Ria has invested in the LIC’s New Jeevan Anand policy plan for 15 years for the guaranteed sum of INR 15,00,000. Now, she has to pay an amount of INR 50,000 annually, which she will pay for three years. Suppose she wishes to surrender her New Jeevan Anand policy in the fourth year for various reasons.

The special surrender value can be calculated as follows:
Special surrender value= {15, 00,000*(4/15) +40000}*40%
=INR 176,000

Assume the percentage/surrender value factor is 40%
Assume the bonus collected is INR 40,000
With the steps shown in both cases above, you can quickly calculate your surrender value. One should always know what they want what they buy, and compare with other financial products for returns. You can take the help of a planner to understand the whole policy and its surrender penalty clause.

How to Surrender the LIC policy?

One needs to follow the steps below to surrender their LIC Policy:

Step 1: Policyholders must visit the nearest LIC branch or log in to LIC’s official webpage.

Step 2: Obtain the “Surrender Discharge Voucher” (LIC Form No. 5074) by downloading it online or from an LIC office.

Step 3: Fill out the form to discontinue the LIC policy and withdraw the surrender value from the bank.

Step 4: Submit the filled form to LIC along with proper documentation.

Step 5: The surrender process initiates once the company accepts the form. Subsequently, the surrender value is credited to the policyholder's registered bank account in 7-10 days.

LIC Surrender Value Calculator

As you have seen, LIC policies can be surrendered anytime. For this, LIC Surrender Value calculators give individuals a fair estimate of their policy surrender value. The LIC surrender value calculator is helpful for those considering surrendering the policy. This can help them estimate the entitled benefit amount (if applicable) in seconds and from the comfort of their homes.

One has to provide some information regarding your policy, and the calculator gives you an estimate of surrender value.

Factors to Keep In Mind Before Surrendering LIC Policy

  • Surrender Charges: Understand the surrender charges associated with your policy. Some policies have penalties for surrendering before a certain period, and these charges can significantly impact the amount you receive.

  • Premiums Paid: Consider the total premiums you've paid so far. The surrender value may be more if you've paid premiums for a significant period.

  • Financial Needs: Evaluate your current financial situation. If you need immediate funds and have no other sources, surrendering the policy might be necessary, but be aware of the consequences.

  • Future Insurance Needs: Assess your future insurance requirements. Surrendering a policy means losing the associated life cover, so ensure you have an alternative plan.

  • Impact on Bonuses: Surrendering may result in forfeiting bonuses attached to the policy. Consider how this loss might affect your overall financial plan.

Wrapping It Up:

Surrendering your LIC policy is a consequential decision that requires thoughtful consideration. Utilize the LIC surrender value calculator to get the potential financial implications. Differentiate between Guaranteed and Special Surrender Values and understand their impact on the final payout. 

However, surrendering your policy means terminating your life cover, which may cause severe financial distress at the time of need. Analyze your requirements and make choices aligned with your goals, ensuring enduring financial security.


  • Q: How much will I get if I surrender the LIC policy?

    Ans: The surrender value of your LIC policy refers to the amount you will receive if you terminate your policy before its maturity date. The surrender value of your LIC policy depends on factors like type, premiums paid, and policy term.
  • Q: How can I calculate my surrender value?

    Ans: To calculate the surrender value of your LIC policy, you can use the following formula: Surrender Value = (Guaranteed Surrender Value + Special Surrender Value) - Outstanding Loans (if any)
  • Q: When can I surrender my LIC policy?

    Ans: You can surrender your LIC policy any time after the lock-in period, usually 3 years from the date of policy inception. However, the surrender value may vary depending on the policy's term and the number of premiums paid.

*All savings are provided by the insurer as per the IRDAI approved insurance plan. Standard T&C Apply
+Returns Since Inception of LIC Growth Fund
~Source - Google Review Rating available on:-
++Returns are 10 years returns of Nifty 100 Index benchmark

LIC Calculator
  • One time
  • Monthly
/ Year
Sensex has given 10% return from 2010 - 2020
You invest
You get
View plans

LIC of India articles

Recent Articles
Popular Articles
LIC Amritbaal Premium Calculator

29 Mar 2024

LIC Amritbaal Premium and Maturity Calculator is an online tool
Read more
LIC New Endowment Plan Maturity and Premium Calculator

04 Mar 2024

LIC's New Endowment Plan premium and maturity calculator allows
Read more
LIC Amritbaal

22 Feb 2024

LIC Amritbaal is a newly launched plan specially designed to
Read more
Benefits of LIC Jeevan Amar

13 Feb 2024

LIC Jeevan Amar is a term insurance policy offered by the LIC of
Read more
LIC Jeevan Azad Calculator

12 Feb 2024

LIC Jeevan Azad Calculator is an online tool that allows
Read more
10 Best LIC Plans to Invest in 2024
Ever since its inception in 1956, LIC has been maintaining its stronghold in the Life Insurance domain with its
Read more
LIC Online Premium Payment
The LIC Online Payment by Policybazaar enables policyholders to pay their insurance premiums online at their
Read more
How to Check the Maturity Amount of LIC Policies?
The LIC maturity value is the amount payable to the policyholder upon the completion of the policy term. LIC
Read more
Surrendering LIC Policy Before Maturity Time: Your Guide!
The Life Insurance Corporation of India is one of the most prominent insurance companies. It has an unparalleled
Read more

Download the Policybazaar app
to manage all your insurance needs.