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

What Is LIC Surrender Value?

The LIC surrender value is the amount LIC pays you if you end your policy before it matures. Once you surrender, the policy stops, and you no longer have life cover or future benefits. This lump-sum LIC surrender amount is usually much lower than the total premiums you've paid, especially in the early years.

It's generally based on your policy's paid-up value, adjusted by a surrender value factor. For participating (with-profit) policies, the surrender value of your vested bonuses is added too.

When Does an LIC Policy Get a Surrender Value?

It depends on when you bought the policy:

Source: IRDAI Master Circular on Life Insurance Products

LIC Surrender Value Chart

The LIC surrender value chart below shows the minimum guaranteed surrender value (GSV) under IRDAI's rules for non-linked policies with regular or limited premiums:

Source:Business Standard on IRDAI's surrender value norms from 1 April 2024. LIC usually pays the higher of the guaranteed and special surrender value, so your actual amount may be more. Single-premium policies follow a different scale. Older policies may follow their original terms.

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 surrendered, all premium payments, benefits or claims of the LIC policy cease.

• Surrender Value is decided as per the policy terms and paid to the policyholder after certain deductions by LIC.

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.

• The Special Surrender Value may differ from the normal Surrender Value In certain circumstances.

Lapse after Non-Payments

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

• 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 the Surrender Value Factor.

What is the Surrender Value Factor (SVF)?

The Surrender Value Factor (SVF) is a percentage that tells you the portion of the policy’s worth that you will get in different policy years if you decide to surrender your policy before maturity. Surrender value grows with every passing policy year as you keep paying premiums. The SVF mostly remains between 30% - 90% of the promised value plus any accumulated bonuses.

How to Check Surrender Value of LIC Policy?

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

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 on the LIC customer portal:

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 the surrender value for.
Step 5: Your LIC surrender value, if available, will be displayed along with other details.

This process is quick and can be done anytime.

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 the 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:

• Call on the Toll-free number of LIC at +91 22 68276827

• Send ‘Hi’ from your registered mobile number on WhatsApp to 8976862090.

• Use SMS service by sending LICHELP <Policy Number> at 9222492224.

• Visit the nearest LIC branch for in person assistance and to know your surrender value.

LIC surrender value calculator

An LIC of India surrender value calculator gives a quick estimate. Enter details like your sum assured, premium, policy term and number of premiums paid. Searching for an "LIC surrender value calculator app"? Calculators run in any phone browser, so you don't need a separate app; for your exact value, use LIC's own app or portal.

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.

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 LIC Surrender Status Check Online by Policy Number?

When you surrender a policy and submit the request, you might naturally get curious about 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. You can check your LIC Surrender Status by following these steps:

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 customer 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) is 30% of total premiums paid (excluding the first-year and rider premiums).

• Special Surrender Value (SSV) is the value derived based on the paid-up value of your policy along with accrued bonuses, and the 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, knowing how to calculate the surrender value is important. Let’s understand the benefits and how to use them.

What are the 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 accurate 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 surrender value obtained after calculation is very low, then the calculator even prompts other feasible options like taking a loan against the policy or continuing as a paid-up policy with low premiums.

• Easy to Use: LIC’s surrender value calculator can be used by people of all ages very easily as it does not require any advanced tech knowledge. In fact, there are various LIC calculators for customers to check premiums, benefits and other details of their policy online.

How to Use LIC Surrender Value Calculator?

Let’s see how to find surrender value of LIC policy using the 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: These are the penalty charges incurred during the surrender period, if you decide to surrender your policy. Surrender charges are usually high to discourage people from surrendering their policies.

• Paid Premiums: The longer you keep your policy active by paying regular premiums, the higher will be your surrender value.

• Coverage Gap: Once the policy is surrendered, the insurance policy is terminated. Then, if you decide to buy a new LIC policy then the premiums acquired may be higher than your older policy.

• LIC Terms and Conditions: Always remember to re-check the terms and conditions of your policy regarding penalties and any other deductions.

Alternatives to Surrendering Your LIC Policy

Surrendering is usually the most expensive way to get money out of a policy. Consider these first:

• Take a loan against the policy: most LIC policies with a surrender value let you borrow against it, while your cover continues.

• Make it paid-up: stop paying premiums but keep the policy going with a reduced sum assured, instead of ending it.

• Partial withdrawal: possible in some plans, such as ULIPs, after the lock-in period.

How Can You Check Your Surrender Value Online for 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: Existing 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 surrender value calculator to find out an approximate amount of surrender.

• 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 eligible for surrender.

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

• Submit Documents for Verification: Submit mandatory documents to LIC for verification. Incomplete documents can cause delays during payout.

• Track Surrender Request: Policyholders can use both online (LIC customer portal) and offline (visiting the nearest LIC branch) modes to track their LIC policy surrender request and monitor status.

• Time Taken to Process: LIC usually takes up to 7 to 10 working days to credit the surrender value in your account after careful verification of submitted documents.

Is Checking LIC Surrender Value Helpful?

Policyholders who decide to surrender their LIC policies can check their surrender value beforehand to make an efficient financial decision. To check the surrender value of your policy, log in to the online customer portal and you can even visit the nearest LIC branch for assistance. Use the LIC policy surrender value calculator to estimate your surrender value instantly. It helps the policyholder to decide whether it is beneficial to surrender the policy now to recover funds or other options of loan or maintaining it as a paid-up policy can also be chosen to keep the insurance component intact. Knowing about your surrender value can help you make a responsible financial decision as per your future goals and current requirements.

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