LIC pays the higher of the guaranteed surrender value (a percentage of premiums paid, excluding the first year, plus a share of bonus) and the special surrender value (the paid-up value discounted to today). For a Jeevan Anand policy with ₹5 lakh sum assured and ₹25,000 yearly premium, surrendered after 7 of 20 years, this calculator estimates about ₹1,37,976, or 79% of the ₹1,75,000 paid.
LIC Surrender Value Calculator
Your estimate
- Total premium paid
- ₹1,75,000
- Guaranteed surrender value (GSV)
- ₹1,28,625
- Special surrender value (SSV)
- ₹1,37,976
- GSV factor used
- 70.00%
- Bonus accrued
- ₹1,57,500
- Paid-up value if you stop paying (payable at maturity)
- ₹3,32,500
- Loan you may getup to 90% of surrender value, for in-force policies
- ₹1,24,178
- Estimated surrender value₹1,37,97679%
- Premium not recovered₹37,02421%
Estimated surrender value by years of premium paid
| Years of premium paid | Premium paid | Guaranteed surrender value (GSV) | Special surrender value (SSV) | Estimated surrender value |
|---|---|---|---|---|
| 2 | ₹50,000 | ₹14,250 | ₹28,107 | ₹28,107 |
| 3 | ₹75,000 | ₹25,125 | ₹45,112 | ₹45,112 |
| 4 | ₹1,00,000 | ₹43,500 | ₹64,360 | ₹64,360 |
| 5 | ₹1,25,000 | ₹66,875 | ₹86,081 | ₹86,081 |
| 6 | ₹1,50,000 | ₹95,250 | ₹1,10,528 | ₹1,10,528 |
| 7 | ₹1,75,000 | ₹1,28,625 | ₹1,37,976 | ₹1,37,976 |
| 8 | ₹2,00,000 | ₹1,67,000 | ₹1,68,725 | ₹1,68,725 |
| 9 | ₹2,25,000 | ₹2,10,375 | ₹2,03,102 | ₹2,10,375 |
| 10 | ₹2,50,000 | ₹2,36,250 | ₹2,41,466 | ₹2,41,466 |
| 15 | ₹3,75,000 | ₹3,65,625 | ₹5,08,003 | ₹5,08,003 |
| 20 | ₹5,00,000 | ₹4,95,000 | ₹9,50,000 | ₹9,50,000 |
Individual life insurance premiums are exempt from GST from 22 September 2025. Figures are estimates based on typical rates and may differ from LIC’s official quote.
What does the LIC surrender value calculator do?
Sometimes a policy no longer fits: premiums feel heavy, you need cash, or you’ve found a better product. Before you close an LIC policy, you should know exactly how much you will get back. That amount is the surrender value.
This LIC surrender value calculator estimates:
- the surrender value you would receive today;
- the share of premiums you get back, as a percentage;
- the guaranteed surrender value (GSV) and special surrender value (SSV) separately;
- the bonus accrued so far;
- the paid-up value you would get at maturity if you simply stop paying;
- the loan you could take instead of surrendering;
- a year-wise table showing how the value grows with every extra year you pay.
It covers LIC’s traditional with-profit plans: Jeevan Anand, New Endowment, Jeevan Labh, Jeevan Umang, Jeevan Lakshya (Kanyadan), Jeevan Tarun, Limited Premium Endowment, Jeevan Saral and other older plans.
How LIC calculates surrender value
LIC calculates two values and pays whichever is higher.
1. Guaranteed surrender value (GSV)
GSV = GSV factor × (premiums paid − first year’s premium) + 15% of accrued bonus
The GSV factor grows with the number of years paid. The calculator uses plan-wise factors, interpolating between the key years:
| Plan group | After 3 years | After 5 years | After 10 years |
|---|---|---|---|
| Jeevan Anand, New Endowment, Jeevan Tarun, Jeevan Lakshya | 30% | 50% | 90% (cap) |
| Jeevan Labh, Limited Premium Endowment | 20% | 40% | 90% |
| Jeevan Umang, Komal Jeevan, Jeevan Tarang | 25% | 45% | 90% (cap) |
| Micro insurance plans | 20% | 35% | 80% |
2. Special surrender value (SSV)
Paid-up value = sum assured × (years paid ÷ premium paying term) + accrued bonus
SSV = paid-up value discounted to today at 7% a year for the years left to maturity
LIC’s own SSV factors are not published for every plan, so the discounting method gives a close, slightly conservative estimate.
When it becomes payable: after two full years of premium for 9xx and 7xx-series plans. Many 8xx-series and older plans, such as Jeevan Saral, need three years; the calculator applies three years to the older plan groups in its list.
Worked examples
Example 1: Jeevan Anand after 7 years. Suresh has a Jeevan Anand policy with ₹5 lakh sum assured, a 20-year term and ₹25,000 yearly premium. He has paid 7 years (₹1,75,000). With bonus of ₹45 per ₹1,000 a year, the calculator shows:
| Item | Estimate |
|---|---|
| Bonus accrued | ₹1,57,500 |
| GSV (70% factor) | ₹1,28,625 |
| SSV | ₹1,37,976 |
| Surrender value | ₹1,37,976 |
| Share of premiums back | 78.84% |
| Paid-up value at maturity | ₹3,32,500 |
| Loan available | ₹1,24,178 |
If he surrendered after only 3 years, he would get about ₹45,112 on ₹75,000 paid (60%). After 15 years, the value rises to about ₹5,08,003, more than he has paid.
Example 2: Jeevan Labh after 5 years. Kavita holds Jeevan Labh with ₹10 lakh cover, a 21-year term, 15-year premium term and ₹52,000 yearly premium. After 5 years (₹2,60,000 paid), the estimated surrender value is ₹1,89,127 (73%). The GSV is only ₹1,16,950, so the SSV decides the payout.
Tip: the biggest losses happen in the first few years. If you need money for a short time, check the loan figure first: it keeps your cover and bonus alive.
How to read the results
- Estimated surrender value: the higher of GSV and SSV.
- Share of premiums you get back: below 100% means a loss on paper; add the value of the life cover you had.
- GSV and SSV: shown separately so you can see which one applies.
- GSV factor used: the percentage applied to your premiums (excluding the first year).
- Paid-up value: what you’d get at maturity if you stop paying and don’t surrender.
- Loan you may get: up to about 90% of the surrender value while the policy is in force.
Tips and common mistakes
- Ask LIC for the exact figure. Your branch or the LIC customer portal can quote the actual surrender value. Use this calculator to judge whether that quote is reasonable.
- Don’t forget survival benefits. For money back policies, amounts already paid to you reduce the surrender value.
- Enter the base premium only. Leave out rider premium and any GST that older receipts show (GST applied before 22 September 2025; premiums are GST-free now).
- Think about cover. Once you surrender, the life cover ends. Make sure you have a term plan in place first.
- Compare with the paid-up option. If you can wait, a paid-up policy often returns more at maturity than surrender gives today.
Related calculators
- LIC bonus calculator: estimate the bonus your policy has earned.
- LIC maturity calculator: see what you would get by staying till maturity.
- LIC all in one premium calculator: compare premiums of current LIC plans if you are switching.
Frequently asked questions
When does an LIC policy get a surrender value?
Plans from the 9xx series (2020) and the current 7xx series acquire a surrender value after two full years of premium. Many 8xx-series and older plans, such as Jeevan Saral, need three full years. If you surrender earlier, you usually get nothing back, so check your policy bond.
How is LIC surrender value calculated?
LIC works out two values and pays the higher. The guaranteed surrender value (GSV) is a GSV factor × premiums paid excluding the first year, plus a percentage of accrued bonus. The special surrender value (SSV) is the paid-up value (sum assured × premiums paid ÷ premiums payable, plus bonus) multiplied by an SSV factor.
What is the GSV factor in LIC?
It is the percentage of premiums that LIC guarantees to return. In this calculator it starts at 20–30% after three years, rises to 35–50% at five years and reaches up to 90% at ten years or more, depending on the plan. Factors are interpolated between these points.
Do I get bonus if I surrender my LIC policy?
Yes, partly. Bonus already added to the policy counts towards the surrender value. In the guaranteed value, only a percentage of bonus (15% in this calculator) is included. In the special value, the full accrued bonus is part of the paid-up value before discounting.
Is it better to surrender or make the policy paid-up?
If you stop paying after the surrender-value stage, the policy becomes paid-up: a reduced sum assured plus bonus already added, paid at maturity. Surrender gives cash now. Compare the two figures in the calculator; if you don't need the money, a paid-up policy often gives more in the end.
Can I take a loan instead of surrendering?
Yes. Once your policy has a surrender value, LIC usually lends up to about 90% of it for in-force policies, at a set interest rate. A loan keeps your cover and bonus running, which is often better than surrendering for a short-term need.
Is the LIC surrender value taxable?
The surrender value is generally tax-free if the policy meets the Section 11 read with Schedule II of the Income-tax Act, 2025 (earlier Section 10(10D)) conditions. If you surrender within two years of starting the policy, the Section 123 of the Income-tax Act, 2025 (earlier Section 80C) deduction claimed on premiums can be reversed and added to your income for that year.
Disclaimer: LIC Premium Calculators is an independent website. We are not affiliated with, endorsed by or connected to Life Insurance Corporation of India. All figures are estimates for illustration; confirm exact premiums and benefits with LIC or a licensed agent before buying.