LIC Surrender Value Calculator
Know your policy surrender amount before closing your LIC policy
LIC Policy Surrender Value (Plan Surrender) Overview
The Surrender Value Calculator estimates the amount you will receive if you decide to terminate your LIC policy before maturity. It calculates both Guaranteed Surrender Value (GSV) and Special Surrender Value (SSV) based on IRDAI guidelines.
Eligibility & Rules
- Condition: Policy must have completed at least 2 full years of premium payments (for policies issued after 2020) or 3 years (for older policies).
- Applicability: Endowment, Money-Back, and Whole Life plans.
Key Plan Benefits
- Guaranteed Surrender Value (GSV): Minimum guaranteed percentage of total premiums paid.
- Special Surrender Value (SSV): Often higher than GSV, includes a portion of vested bonuses based on surrender factors.
- Payable Amount: Higher of GSV or SSV.
Detailed Maturity Benefit
Basic Sum Assured + Vested Simple Reversionary Bonuses + Final Additional Bonus (if any). Payable on surviving the policy term.
Standard Policy Features
- Grace Period: 30 days for Yearly, Half-Yearly, and Quarterly premium payment modes, and 15 days for Monthly mode.
- Free Look Period: 30 days from the date of receipt of the policy document to review the terms and conditions.
- Loan & Surrender Facility: The policy acquires a Surrender Value and Loan facility after the payment of 2 full years' premiums.
- Tax Benefits: Premiums paid are eligible for tax deduction under Section 80C, and maturity/death benefits are tax-free under Section 10(10D), subject to prevailing tax laws.
Example Calculation
| Parameter | Value |
|---|---|
| Sum Assured | ₹5,00,000 |
| Age / Policy Term | Policy Paid for 10 / 20 Yrs Years |
| Yearly Premium (Approx) | ₹25,000 / year |
| Total Paid Premium | ₹2,50,000 |
| Maturity / Total Benefits | ₹GSV: ₹1.4L, SSV: ₹1.9L → Surrender Value Payable: ₹1.9L |
Calculating…