About the LIC Surrender calculator
Surrendering a policy ends it before maturity in exchange for a surrender value. Insurers work out a guaranteed surrender value from fixed factors in the policy, and may offer a special surrender value that is often higher.
This calculator applies the factors you enter to the premium and bonus bases you enter. The insurer’s quote is final.
How the LIC Surrender calculator works
Surrender value = Premium base × premium factor + Bonus base × bonus factor − Deductions
Take the eligible premiums, vested bonus and both factors from your policy document or the insurer. The defaults are examples, not plan terms.
Worked example
- Eligible premium base
- ₹2,00,000
- Premium surrender factor
- 30%
- Eligible bonus base
- ₹50,000
- Bonus surrender factor
- 30%
- Loans / other deductions
- ₹0
Example inputs
- Illustrative surrender proceeds
- ₹75,000
- Benefits before deductions
- ₹75,000
- Entered deductions
- ₹0
Calculated result
Why use a LIC Surrender calculator?
- Get a rough idea of what surrendering would return.
- Compare surrender with continuing the policy or making it paid-up.
LIC Surrender calculator FAQs
When can a policy be surrendered?
After the minimum period in the policy terms. IRDAI rules set how surrender values are calculated for newer policies.
What is a paid-up policy?
If you stop paying premiums after the required period, the policy may continue with a reduced sum assured instead of being surrendered.
Why is the surrender value less than premiums paid?
Early in a policy, much of the premium covers insurance, costs and charges, so the surrender value is lower.
Which surrender value will I get?
Insurers generally pay the higher of the guaranteed and special surrender values. Ask the insurer for a quote.