LIC Surrender Value After 10 Years Calculator

Various policyholders use this calculator to understand whether surrendering their policy is financially beneficial or whether continuing the policy would provide better returns in the long run.

What is the LIC Surrender Value After 10 Years Calculator?

The LIC policy surrender value calculator helps users to enter policy details such as name of plan, policy term, sum assured, annual premium, premium frequency, and years of premium amount paid. On the basis of these details, it provides an approximate value that you can expect in case of surrendering the policy.

What is the LIC Surrender Value After 10 Years Calculator?

LIC Surrender Value After 10 Years Calculator is an online tool that helps policyholders in calculating the approximate amount they might receive if they surrender their LIC policy after 10 years of premium payment. It provides a rough surrender value by considering the policy term, premium amount, sum assured, the bonuses accrued, and the type of policy.

The LIC Surrender Value after 10 years calculator helps estimate:

• Guaranteed surrender value

• Special surrender value

• Total bonus accumulated

• Approximate payout amount

To calculate the surrender amount, users usually need to enter:

• Policy name

• Policy term

• Sum assured

• Annual premium

• Bonus details

• Number of premiums paid

After entering these details, the calculator provides an estimated surrender amount.

Outputs by LIC Surrender Value After 10 Years Calculator

• Guaranteed Surrender Value (GSV)

• Special Surrender Value (SSV)

• Bonus Presently Due

• Estimated Final Payout

Additionally, a few calculators might illustrate a yearly surrender value comparison to assist the policyholders in grasping the changes in the value over time.

How does LIC Surrender Value After 10 Years Calculator Work?

Using the LIC surrender value calculator, you can calculate the surrender value you will get after 10 years. You have to follow some simple steps to calculate the LIC Surrender Value.

Step 1: Enter Policy Details such as Policy Start Year, Policy Term, Premium Payment Mode, and Last Premium Paid.

Step 2: Enter Cover Details

• Sum Assured: The amount of insurance cover provided by the policy (in lakhs)

• Annual Premium: The amount of premium to be paid yearly

• Accrued Bonus: Bonus accumulated till now (if any)

The calculator will show you:

• Surrender Value The amount that may be obtained by surrendering the policy

• Sum Assured The total amount covered by the policy

• Premium Paid Till Date The total amount of premiums paid so far

What are the Types of LIC Surrender Values?

There are 2 different types of LIC Surrender values:

Guaranteed Surrender Value (GSV):

Guaranteed Surrender Value is equal to - (total premium paid multiplied by the guaranteed surrender value factor) plus (bonus multiplied by surrender value factor for bonus).

• The guaranteed surrender value is the minimum amount LIC promises to pay if the policy is surrendered early. An LIC surrender value calculator helps you estimate this value easily and quickly.

• This calculation is based on the total amount of premiums paid, excluding the first year's premiums, as they are usually not included in the final value.

• The surrender value does not include extra bonuses added to the surrender value policy, as it mainly depends on premiums.

Special Surrender Value (SSV):

Special Surrender Value is equal to - (Original sum assured multiplied by (number of premiums paid / number of premium payable) + total bonus received) * surrender value factor.

• The SSV is higher than the assured surrender value, as it considers the policy's paid-up value and bonuses earned.

• The calculation of SSV is based on criteria such as the total assured, premiums already paid, bonus additions and the surrender value component. Many policyholders utilise an LIC Surrender Value Calculator for an estimate.

• On surrender of a policy, LIC normally pays the higher assured value and the special surrender value.

• You can simply compare both prices using a lic policy surrender value calculator.

• The ultimate SSV amount might vary from policy to policy, as it is based on policy duration, terms and announced bonuses. 

You can also check the surrender value of LIC policies before going ahead and deciding on the basis of the information.

All the above information is in the brochure or policy document. All you have to do is place the numbers in these formulae.

**Term insurance plan might be a better choice for those who are more concerned about getting sufficient financial protection than surrender benefits. Term plans are mainly focused on providing very high life coverage at lower premiums, and they don't offer surrender value.

How is the Surrender Value Calculated?

LIC Surrender Value is the payout which is the higher of the Guaranteed Surrender Value (GSV) or the Special Surrender Value (SSV) when the policy is surrendered.

The LIC Surrender value calculator assumes that SSV is being used, which is derived from:

SSV = [{(Premiums Paid Premiums Payable) x Sum Assured} + Accrued Bonus] x Surrender Value Factor (SVF)

The SVF is determined by the insurer and it becomes larger with each policy year. By surrendering a policy, you are essentially giving up the coverage in exchange for a one-time payment.

How to Use LIC Surrender Value 10 Year Calculator?

Here is a detailed step-by-step guide on how to utilise a LIC Surrender Value Calculator.

Step 1: Go to LIC official website

Step 2: Scroll down to the section ‘Calculate Premium’.

Step 3: Enter the required details such as name, DOB, gender, contact, etc. 

Step 4: Select your LIC Plan Name, e.g., Jeevan Anand, New Endowment Plan. Then provide data like the sum assured and policy term.

Step 5: Check LIC Surrender value. The benefit illustration provided will show the year-wise surrender value of your LIC policy.

Sample Illustration using LIC Surrender Value After 10 Years Calculator

Let us assume that you bought LIC’s New Jeevan Anand policy at the age of 30 years. Here are your requirements -

Policy term - 20 years

Sum assured - Rs. 10,00,000

Using the LIC Calculator, annual premium - Rs. 58,181

Bonus Rate - Rs. 50 per Rs. 1000 of the sum assured

Now, you decide to surrender the policy in the 11th year. Therefore -

The total premiums paid are equal to Rs. 5,81,810.

Total bonus accrued = ((50 x 10,00,000/1,000) x 10) equals Rs. 5,00,000.

The guaranteed surrender value factor for a policy term of 20 years and policy surrender in the 11th year is 60% (as mentioned in LIC New Jeevan Anand’s brochure).

The guaranteed surrender value factor for bonuses is 18.6%.

Putting the above data in the formula for calculating the LIC guaranteed Surrender Value after 10 Years, we get (5,81,810 multiplied by 60%) plus (5,00,000 multiplied by 18.6%), which is equal to Rs. 4,42,086.

This is the LIC surrender value you will receive if you surrender your policy after 10 years.

What are the Benefits of Using the LIC Surrender Value Calculator?

Rapid Estimation: A LIC surrender value calculator enables policyholders to obtain an approximate surrender value quickly. It reduces the requirment of a manual calculations and provides a rapid assessment of the estimated payout. 

Accurate Results: The calculator generates an accurate estimate by utilising information such as the number of premiums paid, the duration of the policy, incentives, and the surrender value factors of the LIC.

Useful for Financial Planning: Policyholders can make more informed financial decisions by verifying the estimated LIC policy surrender value prior to closing a policy.

Compare Values Over Time: You may very well decide your next move on the basis of a thorough understanding of policy values at different years of continuation from the time of surrender (3, 5 or even 10) by using the feature to compare the surrender values easily.

Things to know before calculating LIC surrender value after 10 years

If you want to calculate how much money you will get if you are surrendering LIC policy before maturity, you should know certain important aspects of LIC’s surrender value benefit.

Terms of LIC Surrender Value:

• To surrender an LIC policy after 10 years, you should have paid premiums for a minimum of 2 years. Only then can you claim any surrender benefit.

• The more premiums you have paid, the more money you will return.

• Bonuses also acquire a surrender value.

• LIC of India declares surrender value factors as per the policy term and the policy year in which you are surrendering it.

• Surrender value factors are separate for premiums paid and bonuses accrued.

• Surrender value does not include the 1 year’s premium, premiums paid for riders and taxes.

LIC Resources

Summing Up!

There are several factors involved in computing the LIC surrender value after 10 years, such as the kind of policy, the premiums paid, the policy duration, bonuses, and surrender charges. It is crucial to know the provisions of your particular LIC policy surrender value before you make a decision. You should evaluate the financial consequences if you surrender your LIC policy and, at the same time, consider other alternatives like getting a loan against the policy or switching it to a paid-up policy.

FAQ’s