LIC Surrender Value After 10 Years Calculator

The surrender value of a LIC insurance policy is the amount that the policyholder will receive if they decide to terminate the policy before its maturity date. After 10 years of paying premiums, most life insurance policies start to acquire a surrender value. The LIC surrender value after 10 years of premium payment can be calculated based on the pending premium payments, attached bonuses, and the surrender value factor.

Read more
LIC Plans-
Buy LIC policy online hassle free
Tax saving under Sec 80C & 10(10D)^
Guaranteed maturity with life cover for securing family's future
Sovereign guarantee as per Sec 37 of LIC Act
LIC life insurance
We are rated~
6.7 Crore
Registered Consumers
Insurance Partners
3.4 Crore
Policies Sold
Now Available on Policybazaar
Grow wealth through
100% Guaranteed Returns 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, agreed to our Privacy Policy and Terms of use #For a 55 year on investment of 20Lacs Tax benefit is subject to changes in tax laws
Get Updates on WhatsApp
We are rated~
6.7 Crore
Registered Consumers
Insurance Partners
3.4 Crore
Policies Sold

What is LIC Surrender Value?

LIC surrender value is the amount a policyholder receives if they decide to terminate or surrender their life insurance policy before its maturity date. Surrendering a policy means the policyholder stops paying premiums and gives up the insurance coverage provided by the policy. As a result, the policyholder is entitled to receive the surrender value, which is a portion of the total premiums paid, after accounting for various deductions and charges. Some of the standard deductions that are considered while calculating the surrender value include:

  • Surrender Charges

  • Policy Administration Charges

  • Mortality Charges

  • Premium Allocation Charges

  • Service Tax and GST

Things to know before calculating LIC surrender value after 10 years

If you want to calculate how much money you can encash from your policy after surrendering it, you should know certain important aspects of LIC’s surrender value benefit. 

  1. Terms of LIC Surrender Value:

    • To surrender an LIC policy after 10 years, you should have paid premiums for a minimum of 3 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 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. 

  2. What Do You Get After LIC Policy Surrender?

    When you surrender a LIC policy, you receive a surrender value from the company. The surrender value is the amount that LIC pays you when you terminate your policy prematurely. The exact amount you receive depends on several factors, including the type of policy, the number of premiums paid, the policy's duration, and whether it is eligible for any bonuses.

    There are two types of surrender values associated with LIC policies:

    • Guaranteed Surrender Value (GSV): The GSV is the minimum amount that LIC is legally obligated to pay you if you choose to surrender your policy. It is calculated based on your paid premiums and the policy's duration. Typically, GSV becomes applicable after you have paid premiums for at least two or three years, depending on the policy terms.

    • Special Surrender Value (SSV): The SSV is a more flexible and dynamic value that LIC offers as the surrender value. It takes into account the policy's duration, the sum assured, and any bonuses attached to the policy. SSV tends to be higher than GSV, especially if the policy has been in force for longer and accrued bonuses.

    The surrender value you receive will be either the GSV or the SSV, whichever is higher. In most cases, the SSV is applicable after a certain number of policy years and is typically higher than the GSV. You can also check the surrender value of LIC policies before proceeding and make an informed decision. 

LIC Surrender Value After 10 Years Calculator

Surrender value calculation is very simple. 

  • 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).

  • 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

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

Sample Illustration using LIC Surrender Value After 10 Years Calculator

Let us assume that you bought LIC’s New Jeevan Anand policy. Here are your requirements - 

  • Policy term - 20 years 

  • Sum assured - Rs. 10,00,000

  • Using the LIC Premium & Maturity Calculator, annual premium - Rs. 54,869 

  • 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. 5,48,690.

  • 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 (5,48,690 multiplied by 60%) plus (5,00,000 multiplied by 18.6%), which is equal to Rs. 4,22,214. 

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

Summing Up!

Calculating the LIC surrender value after 10 years involves various factors, including the type of policy, premiums paid, policy duration, bonuses, and surrender charges. It's important to understand the terms and conditions of your specific LIC policy to make an informed decision. Before deciding to surrender your LIC policy, assess the financial impact and explore alternative options, such as taking a loan against the policy or converting it into a paid-up policy. 

*All savings are provided by the insurer as per the IRDAI approved insurance plan. Standard T&C Apply
^Trad plans with a premium above 5 lakhs would be taxed as per applicable tax slabs post 31st march 2023
+Returns Since Inception of LIC Growth Fund
~Source - Google Review Rating available on:-
++Returns are 10 years returns of Nifty 100 Index benchmark

LIC of India
LIC Plans
LIC Jeevan Utsav
LIC Jeevan Kiran
LIC Dhan Vriddhi
LIC Monthly Investment Plans
LIC Jeevan Azad
LIC 1 Crore Endowment Plans
LIC Jeevan Labh 1 Crore
LIC Crorepati Plan
LIC Dhan Varsha - Plan No. 866
LIC Pension Plus Plan
LIC New Jeevan Shanti
LIC Bima Ratna
LIC Group Plans
LIC Fixed Deposit Monthly Income Plan
LIC Savings Plans
LIC’s New Jeevan Anand
LIC New Jeevan Anand Plan 915
LIC's Saral Jeevan Bima
LIC's Dhan Rekha
LIC Jeevan Labh 836
LIC Jeevan Jyoti Bima Yojana
LIC Child Plans Single Premium
LIC Child Plan Fixed Deposit
LIC Jeevan Akshay VII
LIC Yearly Plan
LIC Bima Jyoti (Plan 860)
LIC’s New Bima Bachat Plan 916
LIC Bachat Plus Plan 861
LIC Policy for Girl Child in India
LIC Samriddhi Plus
LIC New Janaraksha Plan
LIC Nivesh Plus
LIC Policy for Women 2024
LIC Plans for 15 years
LIC Jeevan Shree
LIC Jeevan Chhaya
LIC Jeevan Vriddhi
LIC Jeevan Saathi
LIC Jeevan Rekha
LIC Jeevan Pramukh
LIC Jeevan Dhara
LIC Money Plus
LIC Micro Bachat Policy
LIC Endowment Plus Plan
LIC Endowment Assurance Policy
LIC Bhagya Lakshmi Plan
LIC Bima Diamond
LIC Anmol Jeevan
LIC Bima Shree (Plan No. 948)
LIC Jeevan Saathi Plus
LIC Jeevan Shiromani Plan
LIC Annuity Plans
LIC Jeevan Akshay VII Plan
LIC SIIP Plan (Plan no. 852) 2024
LIC Jeevan Umang Plan
LIC Jeevan Shanti Plan
LIC Online Premium Payment
LIC Jeevan Labh Policy-936
LIC Money Plus Plan
LIC Komal Jeevan Plan
LIC Jeevan Tarang Plan
LIC Bima Bachat Plan
LIC’s New Money Back Plan-25 years
LIC Money Back Plan 20 years
LIC Limited Premium Endowment Plan
LIC Jeevan Rakshak Plan
LIC New Jeevan Anand (Previously LIC Plan 149)
LIC New Endowment Plan
LIC Varishtha Pension Bima Yojana
LIC Investment Plans
LIC Pension Plans
Show More Plans
LIC Calculator
  • One time
  • Monthly
/ Year
Sensex has given 10% return from 2010 - 2020
You invest
You get
View plans
Download the Policybazaar app
to manage all your insurance needs.