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Surrender Value = Higher of (Guaranteed Surrender Value, Special Surrender Value)
• Guaranteed Surrender Value (GSV) = 30% of total premiums paid (excluding first year)
• Special Surrender Value (SSV) = (Paid-up Value + Accrued Bonus) × Surrender Factor
Surrender Value Result
- This calculator provides an estimate only. Actual surrender value is determined by LIC.
- Surrender value is payable only after 3 full years of premiums have been paid.
- Special surrender value calculation uses LIC's surrender value factors.
- Consider taking a loan against your policy instead of surrendering it.
- Surrendering a policy may have tax implications.
How Surrender Value is Calculated
LIC Jeevan Anand surrender value is calculated using two methods - Guaranteed Surrender Value and Special Surrender Value. The policyholder receives the higher of the two values.
1. Guaranteed Surrender Value (GSV)
This is calculated as 30% of the total premiums paid, excluding:
- First year premium
- Extra premiums (for higher risk cover)
- Premiums for additional benefits
2. Special Surrender Value (SSV)
This is calculated using the formula:
Paid-up Value Calculation
Paid-up Value = (Number of premiums paid / Total premium paying term) × Sum Assured
Surrender Factor
The surrender factor increases with the number of years premiums have been paid:
- 3-4 years: 80%
- 5 years: 85%
- 6 years: 90%
- 7+ years: 95-100%
Policy Details: Sum Assured: ₹10,00,000 | Annual Premium: ₹50,000 | Premiums Paid: 10 years
Paid-up Value: (10/20) × 10,00,000 = ₹5,00,000
Bonus (₹40 per 1000): (10,00,000/1000) × 40 × 9 = ₹3,60,000
Surrender Factor (10 years): 100%
Special Surrender Value: (5,00,000 + 3,60,000) × 1.00 = ₹8,60,000
Guaranteed Surrender Value: 30% of (10 × 50,000 - 50,000) = 30% of 4,50,000 = ₹1,35,000
Final Surrender Value: Higher of (₹8,60,000, ₹1,35,000) = ₹8,60,000
LIC Policy Surrender Value Comparison
| Policy Type | Minimum Surrender Period | Surrender Value Formula | Special Features |
|---|---|---|---|
| Jeevan Anand | 3 years | Higher of GSV or SSV | Maturity benefit + life cover after maturity |
| Jeevan Labh | 2 years | GSV only for first 5 years | Limited premium payment term |
| Jeevan Umang | 3 years | Higher of GSV or SSV | Annual survival benefits after premium term |
| Jeevan Tarun | 3 years | Higher of GSV or SSV | Child plan with money back benefits |
| Jeevan Lakshya | 3 years | Higher of GSV or SSV | Income benefit plan for family protection |
| Bima Bachat | 2 years | 90% of premiums paid | Money back policy with guaranteed additions |
- Check Paid-up Option: Instead of surrendering, consider making your policy paid-up to retain some benefits.
- Policy Loan: You can avail loan up to 90% of the surrender value without surrendering the policy.
- Tax Implications: Surrender value may be taxable if surrendered before 5 years.
- Revival Period: Lapsed policies can be revived within 5 years from the date of first unpaid premium.
- Partial Withdrawal: Some policies allow partial withdrawal instead of complete surrender.
Guaranteed Surrender Value (GSV): Minimum amount you'll get if you surrender your policy, usually 30% of premiums paid (excluding first year).
Special Surrender Value (SSV): Higher value based on paid-up value and bonuses, calculated using LIC's surrender value factors.
Paid-up Value: Reduced sum assured you get if you stop paying premiums but don't surrender the policy.
Vested Bonus: Total bonuses declared by LIC that have been allocated to your policy.
Disclaimer: This LIC surrender value calculator is designed for educational and informational purposes only. The results provided by this calculator are estimates based on standard LIC formulas and assumptions. The actual surrender value of your LIC policy may vary based on LIC's specific rules, bonus declarations, and other factors. This tool is not affiliated with or endorsed by the Life Insurance Corporation of India. Please consult with LIC or a licensed financial advisor before making any decisions regarding your policy.
See also , lic Surrender Value Calculator