(FAQ)

Frequently Asked Questions (FAQ)

Everything you need to know about LIC Surrender Value, Paid-Up Value, Bonus Rates, and Policy Calculations—explained in simple English.

1. What is the Surrender Value in LIC?

The Surrender Value is the amount you receive if you decide to close your LIC policy before its maturity date.
This value depends on:

  • Total premiums paid

  • The number of years completed

  • Accumulated bonuses

  • LIC’s surrender value factors

The longer you stay invested, the higher your surrender value becomes.

2. When can I surrender an LIC policy?

You can surrender your LIC policy after completing 3 full years of premium payment.
Before 3 years, LIC does not pay any surrender value.

3. How does the LIC Surrender Value Calculator work?

Our calculator uses official LIC formulas to calculate:

  • Guaranteed Surrender Value

  • Special Surrender Value

  • Paid-Up Value

  • Total Bonus

  • Final Payout Amount

Just enter:

  • Sum Assured

  • Policy Term

  • Premium Paying Term

  • Premium Paid Years

  • Bonus Rates

And get instant results.

4. What is the difference between Guaranteed and Special Surrender Value?

Guaranteed Surrender Value (GSV):

A fixed percentage of total premiums paid (excluding taxes, rider charges).

Special Surrender Value (SSV):

A higher value that LIC may offer depending on the policy type, bonus, and completed years.

LIC usually pays whichever is higher between GSV and SSV.

5. What is Paid-Up Value in LIC?

If you stop paying premiums after 3 years, your policy becomes Paid-Up.

Your sum assured reduces based on premiums paid.
You will receive:

  • Reduced Paid-Up Sum Assured

  • Accumulated Bonus

  • Final Benefit at maturity or death

Paid-Up policies do NOT earn future bonuses.

6. Why is my surrender amount lower than expected?

Several reasons:

  • The policy is surrendered early (3–5 years only)

  • Bonus accumulation is low

  • Premium-paying term is long

  • Surrender factors are low during early years

LIC policies give maximum return only when continued till maturity.

7. Do all LIC policies have surrender value?

Most traditional LIC plans (Endowment, Money Back, Whole Life) have surrender value after 3 years.
However:

  • Pure Term Plans

  • Micro Insurance Plans

generally do not offer surrender value.

8. Are bonus rates included in the surrender value?

Yes, LIC includes:

  • Simple Reversionary Bonus

  • Loyalty Bonus (for some plans)

  • Final Additional Bonus (FAB)

But remember:
Bonuses do not apply for early surrender.
Most bonuses only apply after completing many years.

9. How can I increase my LIC surrender value?

To get a higher surrender value:

  • Pay premiums for more years

  • Choose longer-term plans

  • Avoid surrendering before 6–8 years

  • Keep the policy active

  • Choose bonus-heavy plans like Jeevan Anand or Jeevan Labh

10. Is your LIC Surrender Value Calculator accurate?

Our calculator is built using:

  • LIC’s official formulas

  • Verified bonus rates

  • Standard policy rules

Actual values may vary slightly depending on branch updates.
Always verify with your LIC branch before taking any decision.

11. Is this website related to LIC of India?

No.
SurrenderValueOfLICCalculator.site is an independent educational website.
We are not associated, not affiliated, and not endorsed by LIC of India.

12. What happens if I surrender a Money Back policy?

You will get:

  • Surrender Value

  • Bonus accumulated

  • Loyalty Addition (if eligible)

But future survival benefits will stop permanently.

13. Can I calculate surrender value for all LIC plans here?

Yes, our tool supports:

  • 85+ LIC plans

  • Endowment Plans

  • Money Back Plans

  • Jeevan Anand

  • Jeevan Labh

  • Tech Term (No surrender value)

  • Health & Pension Plans (where applicable)

14. How many years do I need to pay premiums to get maximum benefits?

For best returns:

  • Pay full premium term

  • Stay invested for at least 10–15 years

  • Choose plans with high simple reversionary bonus

15. How often are bonus rates updated?

We update bonus rates yearly, based on LIC’s official announcements.

Need more help?

Visit our Contact Page or email us anytime:

📧 support@surrendervalueofliccalculator.site