If you are planning to stop or surrender your LIC policy and are looking for ways to calculate the LIC surrender value, you can use the online calculator. The surrender value you will get depends on different factors. You can enter all the required details on the calculator and find the accurate results instantly.
In this article, we will learn details about the LIC surrender value calculator, how to use it, and many other details.
What is the LIC Surrender Value?
The LIC surrender value is the amount you get from the company when you surrender the policy before the maturity date. You can surrender the policy after completing 1 full year of premium payment, but you will get the surrender value after completing 2 full years of premium payments. The LIC surrender value depends on your total policy duration, premiums paid, and the type of policy. For an accurate calculation, you must use the online free LIC surrender value calculator.
What is the LIC Surrender Value Calculator?
The LIC surrender value calculator is a free online tool that users use to calculate their policy surrender value. Before surrendering a policy, policyholders wish to know how much they will get back from the policy. The calculations are usually lengthy and tricky, but you can easily get the results instantly using the LIC surrender value calculator.
How to Check LIC Surrender Value?
To calculate the surrender value of an LIC policy using a calculator, you need to enter the policy details. Here are the important policy details that you need to enter in the LIC surrender value calculator:
| Policy Start Year | The year you started your policy |
| Policy Tenure | The total tenure of your policy, such as15 years, 20 years, etc. |
| Premium Payment Type | Frequency of your premium payments (quarterly, half-yearly, or annually) |
| Last Premium Payment Year | The year when you paid the most recent premium. |
| Sum Assured | The guaranteed amount that LIC promised to pay at the policy maturity |
| Annual Premium | The total amount you pay as a premium in a year. |
| Accrued Bonus | The bonuses your policy has accumulated over the years. |
After entering all the details correctly, you will get the surrender value, premium paid till date, and future payable premiums.
How does LIC calculate the Policy Surrender Value?
The LIC policy surrender value is the amount that you get when you decide to terminate the policy before maturity. LIC implements a standard formula to calculate the surrender value of the policy. The final surrender value depends on the policy type, premium payment tenure, and completed years.
The formula to calculate the LIC surrender value is:
Policy surrender amount = Guaranteed surrender value + Special surrender value
Here, the guaranteed surrender value is the amount that you will surely get after 3 years of the premium payment term. Special Surrender value is the amount that you get if the policy has completed a long tenure.
1. Guaranteed Surrender Value
It is the minimum amount that you will receive as the surrender value after paying 3 years of premiums. It is calculated as :
GSV = (Total premiums paid – Rider premiums and tax ) x GSV factor (%)
GSV factor is set by LIC and increases with the active years of your policy. The premiums paid for riders such as accidental benefits, critical illness, etc and taxes will not be included in GSV calculations.
2. Special Surrender Value
Under some conditions, LIC offers a higher surrender value. It is called a special surrender value. It happens when the policy has completed many years and accumulated bonuses. SSV is calculated as:
SSV = (Paid-up value + Bonus ) x SSV factor
Paid up value = (Sum assured x no. of premiums paid) / Total payable premiums
Bonus = Accrued reversionary bonus as per LIC terms.
LIC decides the SSV factor, and it undergoes variations based on policy duration and terms.
How does the LIC Surrender Value Calculator Help?
The LIC surrender value calculator helps you to calculate how much you will get if you surrender your LIC policy. It saves you from reading the complicated documents and waiting for your insurance officer to respond to your query. You can easily enter a few necessary details on the LIC surrender value calculator and get the instant result. You need to enter some simple details, such as the annual premium amount, policy tenure, and how many years your policy has been active.
When you enter the information accurately, the calculator will provide you with a close estimate for your surrender value. It saves your time and effort and helps you to make informed decisions.
Why Use the LIC Surrender Value Calculator?
The LIC surrender value calculator is a very helpful online tool. It helps the policyholders to know their estimated policy surrender value before taking any step. You are not required to visit the LIC office and wait for your turn to get your queries cleared. You just open the browser, search for the calculator, and get your results.
The LIC surrender value calculator provides results accurately and instantly. There is no need for paperwork or big calculations. Just enter a few simple details of your policy, and you will get your LIC surrender value. Also, it allows you to compare other possible options available to you for fulfilling your current financial needs.
It is a useful tool for financial planning. In case you are facing any financial hardship or simply want to re-evaluate your insurance portfolio, you can plan according to the surrender value of your policy. You get clarity, confidence, and accurate results for making smart financial decisions.
Benefits of using the LIC surrender value Calculator
Here are the major advantages of using the LIC surrender value calculator:
- Using an LIC policy surrender value calculator, you can estimate how much you will get after surrendering the policy. You will get a complete lic surrender value chart.
- When you know the exact surrender value, you will be able to decide whether you should surrender the policy or not.
- If you get results showing a lower surrender value, you might look for other options to meet your current financial needs, such as availing a loan against the policy value.
- The calculator is very user-friendly and requires only a little financial knowledge.
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Conclusion
The LIC surrender value calculator is a useful digital tool that can be used to know the exact surrender value of the policy. You need to enter the necessary details related to your policy, such as policy term, premiums paid, sum assured, etc., to get the accurate results. Manual calculations can be time-consuming and full of errors, but the LIC policy surrender value calculator provides you with the best results instantly.
FAQs
How can I check the surrender value of an LIC policy using a calculator?
Ans. Use the LIC surrender value calculator to determine the exact surrender value. You need to enter simple policy details, and the calculator will provide the instant results.
Does the LIC surrender value calculator charge for providing results?
Ans. No, the LIC surrender value calculator does not charge any fees.
After how many years should I surrender my policy to get a value?
Ans. You will get a surrender value when you surrender the policy after completing 2 years of premium payment.
Will I get bonuses also after surrendering my LIC policy?
Ans. No, you will not get any bonuses when you surrender your policy. You will only get the surrender amount depending on the policy terms.
What is the better option – surrendering the policy or taking a loan against it?
Ans. If the surrender value is low, you just consider taking a loan against the policy to fulfill your financial needs.
