LIC Surrender Value Calculator
The guaranteed amount LIC pays if you surrender, from LIC's own tables, and whether keeping the policy as paid-up pays more.
Stop a ₹2 lakh, 35-year New Jeevan Anand policy after 10 years of ₹6,968 premiums (₹69,680 paid, ₹60,000 of bonus added) and LIC guarantees at least ₹45,638 on surrender. Kept as a paid-up policy instead, it pays ₹1,17,143 at maturity, 25 years later: a return of 3.8% a year on the surrender value you give up.
The words on this page, explained simply
New to this? Here is what each term means, in plain English.
- Sum assured
- The basic amount your policy promises, printed as Basic Sum Assured on the policy bond. Bonuses are worked out as rupees per ₹1,000 of it.
- Surrender value
- The money LIC pays if you end the policy early. You get the higher of the guaranteed surrender value (from the policy's table) and the special surrender value (set by LIC each year).
- Simple reversionary bonus
- The bonus LIC adds to a policy each year it is in force, stated per ₹1,000 of sum assured. A rate of ₹40 on a ₹2 lakh policy adds ₹8,000 a year. Once added it is yours, but it is paid only at maturity, on death or, at a lower value, on surrender.
- Paid-up policy
- What a policy becomes if you stop paying after enough years: it stays alive with a smaller sum assured, gets no new bonus, and pays out at maturity or on death.
- Policy term
- The number of years until the policy matures and pays out.
If you stop paying an LIC policy you can take the surrender value now, or leave it as a paid-up policy and collect a reduced amount at maturity. Enter the numbers on your policy bond and your bonus statement to see both.
How LIC's surrender value is worked out
LIC pays the higher of two amounts. The Guaranteed Surrender Value is premiums paid × a percentage from LIC's table, plus bonus added so far × a second percentage. The Special Surrender Value is set by LIC each year and is not published; it can be higher, especially in later years. This calculator gives the guaranteed amount, which is the least LIC will pay. Ask your branch for the special value before you decide.
There is no surrender value until two full years of premium are paid. On premiums paid, the percentage is 30% in year 2, 35% in year 3 and 50% in years 4 to 7. It then rises each year to 90% in the last two years.
| New Jeevan Anand, ₹2 lakh, 35 years, ₹6,968 a year | Premiums paid | Guaranteed on premiums |
|---|---|---|
| Year 2 | ₹13,936 | ₹4,181 |
| Year 3 | ₹20,904 | ₹7,316 |
| Year 5 | ₹34,840 | ₹17,420 |
| Year 10 | ₹69,680 | ₹37,160 |
| Year 20 | ₹1,39,360 | ₹89,804 |
| Year 30 | ₹2,09,040 | ₹1,57,951 |
| Year 34 | ₹2,36,912 | ₹2,13,221 |
From LIC's own example in its New Jeevan Anand brochure. Bonus already added is paid on top at its own, lower percentage.
Surrender or keep as paid-up?
A paid-up policy keeps a reduced sum assured: sum assured × premiums paid ÷ premiums due, plus the bonus already added, paid at maturity. It earns no new bonus. The calculator turns the gap between that amount and today's surrender value into a yearly return, which you can compare with what the money would earn elsewhere.
Where to find your bonus rate
LIC adds a bonus every year, stated per ₹1,000 of sum assured: a rate of ₹40 on a ₹2 lakh policy adds ₹8,000 a year. LIC announces the rates once a year, and they change. Your bonus so far is on your LIC bonus statement and in the LIC customer portal; your agent or branch can tell you this year's rate for your plan and term.
This page does not fill in a rate for you, because LIC does not publish its yearly rates on its website. The example rates are the ones LIC's own brochures use to illustrate an 8% investment return, not declared rates.
Plans covered
| Plan | Plan number | Policy term | You pay premiums for |
|---|---|---|---|
| LIC's New Jeevan Anand | 715 | 15 to 35 years | the whole term; cover of the sum assured continues after maturity |
| LIC's New Endowment | 714 | 12 to 35 years | the whole term |
| LIC's Jeevan Labh | 736 | 16, 21 or 25 years | 10, 15 or 16 years |
The rules are from each plan's policy document and sales brochure on licindia.in. Older versions of these plans (915, 914 and 936) work the same way, but their surrender tables differ, so the surrender calculator covers only the current versions.
Key takeaways
- Nothing is paid on surrender before two full years of premium.
- LIC pays the higher of the guaranteed and special surrender values; this page shows the guaranteed one.
- Keeping the policy as paid-up pays a reduced amount at maturity; compare its yearly return before surrendering.
Frequently asked questions
How is LIC surrender value calculated?
LIC pays the higher of the Guaranteed Surrender Value (premiums paid × a percentage from the policy's table, plus bonus added × another percentage) and the Special Surrender Value, which LIC sets each year.
When can I surrender an LIC policy?
After the first policy year if a full year's premium is paid, but the guaranteed surrender value starts only after two full years' premiums.
How much will I lose if I surrender LIC policy after 5 years?
On the guaranteed value, half of the premiums: the percentage is 50% in years 4 to 7. In LIC's New Jeevan Anand example, ₹34,840 paid over 5 years has a guaranteed value of ₹17,420 before bonus.