How to Check LIC Surrender Value: A Step-by-Step Guide

What Is LIC Surrender Value?

LIC Policy Surrender before Maturity is the voluntary ending of your LIC policy before its maturity. Once surrendered, the life insurance coverage stops, and the policyholder receives a lump sum amount called the surrender value.

The surrender value is generally calculated as the paid-up value of the policy along with any accumulated bonuses (if applicable), after deducting certain charges. Most LIC policies become eligible for a surrender value only after at least 3 full years of premium payments.

Types of Surrenders in LIC Policy

Here are some of the types of surrenders in LIC policy.

Full Surrender

• Under the full surrender, the policyholder chooses when to completely terminate their active policy.

• Once the policy is cancelled, the premiums cease, and all associated benefits or claims come to an end.

• LIC will pay a surrender value based on your policy terms, after deducting any applicable charges.

Special Surrender

• There are cases like Serious Illnesses or Critical Health Issues, Extreme Financial Hardship or Bankruptcy, Non-Resident Relocation, Special Concessions on Lapsed Policies, Disaster or Calamity Relief, where LIC may give extraordinary surrender conditions.

• In certain circumstances, the surrender value may differ from the normal surrender value.

Surrender as a result of No premium payments

• If premiums are not paid and the policy is not resurrected during the grace period, the policy may expire or be considered relinquished.

• If the insurance has got a surrender value, LIC will pay the applicable amount.

• If there is no surrender value, no compensation will be paid.

Before you search “how to calculate LIC surrender value”, let us understand about Surrender Value Factor.

What is the Surrender Value Factor (SVF)?

The Surrender Value Factor (SVF) essentially tells you what portion of your policy's worth you will receive if you decide to cancel it before the policy's maturity. Your policy's value grows with each premium payment you make. The SVF assures about 90% of the value you have been promised, along with any bonuses that you earned.

How to Check Surrender Value of LIC Policy?

You can easily do an LIC policy surrender value check through various methods:

LIC Customer Portal

Policyholders looking for LIC surrender value check online can follow these steps. Here’s how to check surrender value of LIC policy:

Step 1: Visit the official LIC website.
Step 2: Login with your policy details.
Step 3: Click on the Policy Status to check your LIC Policy Surrender Status Online.

Step 4: Choose the policy you want to check.
Step 5: Your LIC surrender value, if available, will be displayed along with other details.

This process is quick and can be done anytime and you can do LIC surrender status check online by policy number as well.

LIC Surrender Value Calculator

The LIC Surrender Value Calculator is an easy way to find out the LIC policy surrender value. If you are in the position to surrender your policy, then you can use LIC policy surrender value calculator and can get an estimate of the benefits you can expect from your policy. You just have to put a few details of the policy, like the premium paid and the policy term, and you can have the LIC surrender value in a few seconds.

Using LIC Mobile App

The official MyLIC app, available on Android and iOS, provides an easy way to check your LIC surrender value:

Step 1: Download the app from your device’s app store.

Step 2: Log in using your LIC portal credentials.

Step 3: Go to the ‘Policy Details’ section and view the surrender value.

Contact LIC Customer Care

You can call the LIC customer care helpline for assistance:

• Toll-free number: 1800-33-4433.

• Provide your policy details to the representative and request the surrender value.

Consult Your LIC Agent

If you purchased your policy through an LIC agent, they can help calculate the surrender value and explain how to check LIC surrender value and the financial implications of surrendering.

To check the surrender value of a LIC life insurance policy, you can follow the below steps:

Check Policy Documents

Go through your policy manuals carefully, because they also might have information on how much money you'll get after you surrender your insurance policy and how to go about closing the policy altogether. Usually, the surrender money you can get is mentioned in the terms of your policy and how you would surrender the policy to the insurance company is also clearly explained.

How to Find out LIC Surrender Status Check Online by Policy Number?

When you surrender a policy and submit the request, you might naturally get curious what is happening with your request over time. LIC allows policyholders to track the surrender request online through the portal without needing any branch visits. Here are the steps for how to check LIC surrender status:

Step 1: Log in to the LIC Customer Portal:

Use your registered user name and password to access the policy details.

Step 2: Open the Policy Status section:

Click on the Policy number that you have surrendered to find the status of withdrawal (surrender).

Step 3: Check the update on status:

The status of LIC surrender on policy number online will be displayed through this portal. It will include whether the request is under review, approved, or completed.

Step 4: See payment status:

Once the amount has been processed you can cross check whether the money has been transferred to the bank account as given in the Policy.

If you wonder about checking LIC surrender status by an online platform, the portal is the fastest and most convenient way to keep a tab on your request at any point in time.

How Is LIC Surrender Value Calculated?

The surrender value of LIC depends on the following:

• Guaranteed Surrender Value (GSV): This is 30% of total premiums paid (excluding the first-year and rider premiums).

• Special Surrender Value: Calculated based on the paid-up value, bonuses, and a LIC surrender value factor.

How to Surrender LIC Policy Before Maturity?

The steps below will help you surrender the LIC Policy. Take a look:

Step 1: Visit the LIC Branch or Website for LIC Withdrawal Online.

Step 2: Download the “Surrender Discharge Voucher” (LIC Form No. 5074).

Step 3: Complete the form and attach the required documents.

Step 4: Submit the form at the nearest LIC branch.

Step 5: Once all the documentation is completed, the surrender value will be credited to your bank account within 7-10 days.

LIC terms and conditions state if there is a loan against your policy, the amount will be settled in the surrender value. Before surrendering an LIC policy's surrender value, knowing how to calculate the surrender value is important. Let’s understand the benefits and how to use.

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Benefits of Using an LIC Surrender Value Calculator

Here are some key benefits of using an LIC surrender value calculator to estimate your LIC policy surrender value:

• Quick Financial Assessment: The calculator assists you in calculating the amount you will receive if you decide to cancel your policy.

• Comparison of Payouts: LIC Surrender value calculator estimates both the Guaranteed Surrender Value (GSV)—the minimum legally promised amount—and the Special Surrender Value (SSV), which is usually higher as it includes accrued bonuses.

• Informed Decision Making: Knowing the LIC policy surrender value you will know whether it is the best option for you.

• Exploring Alternatives: If the amount is low, it prompts the individual to look for alternatives, such as a loan against the policy value.

• User-Friendly: The LIC surrender value calculator is very easy to use. It does not require any advanced managerial knowledge.

How to Use LIC Surrender Value Calculator?

Step 1: Enter your policy details such as sum assured, premium amount, policy term, number of premiums paid and type of policy.

Step 2: The calculator will estimate the surrender value

Step 3: Consider your estimated surrender value and whether it fulfils your financial needs.

Key Factors to Consider Before Surrendering Your LIC Policy

• Surrender Charges: Could severely reduce the amount you receive.

• Premiums Paid: The longer the period, the greater the surrender value.

• Coverage Gaps: When you surrender your policy, your life insurance coverage terminates.

• Impact on bonuses: Any accrued bonuses could be lost.

• LIC Terms and Conditions: Check policy-specific regulations; there may be restrictions or penalties.

How Can You Check Your Surrender Value Online Free?

Life Insurance Corporation (LIC) of India offers various ways to policyholders through which they can ascertain the surrender value or do a rough estimation without paying a fee and by simply using LIC services.

• Go to the online portal of LIC: Successful policyholders can see the surrender value on the online portal together with other policy-related information.

• Estimate Surrender Value by Calculator: By inputting various details including the policy term, premiums, and the sum assured, the Life Insurance policyholder can use the policy forfeiture value calculator to find out an approximate amount of the forfeiture or the surrender, as it often is, after the policy is being surrendered.

• Using the MyLIC App: One can also, through the official phone app, get hold of a policyholder's policy information and approximate surrender value.

How Long Does LIC Take to Process a Surrender Request?

For a policyholder, the time required for the final payout depends mainly on two things: successful document validation and confirmation that the policy is up to scratch and still in good standing.

• The average processing time: Once LIC receives the full documents, it typically deposits the surrender value within 7, 10 working days.

• Document confirmation: If the documents are incomplete or there is an error in the bank details, this will prolong the processing time.

• Tracking the request: One can check LIC policy surrender value and follow the surrender request status online via the customer portal as the case is being processed.

• Locally based support: Contact your nearby LIC branch or customer care if the surrender request is not processed within the estimated timeframe to get a progress update.

Wrapping It Up

When you decide to surrender your LIC policy, take the time to ensure that you are making the right decision before proceeding with your choice. Make sure you use online calculators or their mobile apps to understand what exactly your policy amount will be after surrender. Knowing the ins and outs of the LIC policy surrender value will help you make a decision that fits your financial goals, and you will feel more confident about it.

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