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 extreme financial difficulties or catastrophic sickness 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.

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 check your LIC policy details, including the surrender amount, 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.

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 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.

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:

You may also like to read about term insurance plan

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

• 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.

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.

FAQ's