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LIC Surrender Value Calculator: Calculate the surrender value of your LIC policies, including Jeevan Anand, Jeevan Saral, and Jeevan Umang plans. Learn about online tools, apps, and methods to determine your policy’s worth after 10 years or more.

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LIC (Life Insurance Corporation of India) policies are one of the most popular investment and insurance options in India. However, a time may come when the policyholder has to surrender his LIC policy before maturity due to financial emergency conditions or other reasons. It is important to understand the LIC surrender value to make an informed decision.

Surrendering a LIC policy means terminating it before its maturity date, and in return, the policyholder receives a certain sum known as the surrender value. This article will help you understand how to calculate LIC surrender value, the best LIC surrender value calculators available, and whether surrendering your policy is the right decision.

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The surrender value is the amount that the policyholder receives from the LIC when it decides to close the policy before maturity. This price is calculated based on the total number of paid premiums and years of the policy being active.

Several factors determine the surrender value of a LIC policy, including:

• Type of policy – Different LIC policies have different surrender value calculations.
• Number of years the policy has been active – The longer the policy has been in force, the higher the surrender value.
• Total premiums paid – The surrender value is a percentage of the total premiums paid.
• Bonus accumulated – Some policies may include a portion of accrued bonuses in the surrender value.

Types of LIC Surrender Value

• This is the minimum surrender value that LIC guarantees if the policyholder chooses to surrender the policy.
• It is calculated as a percentage of total premiums paid (excluding first-year premium and riders).

• This is usually higher than the guaranteed surrender value.
• It is based on the policy’s term, total premiums paid, and the accumulated bonuses.

How to Calculate LIC Surrender Value?

Surrender Value Formula

The surrender value is calculated using the following formula:

Surrender Value = (Total Premiums Paid – First-Year Premium) × Surrender Value Factor + Accrued Bonus

Example Calculation

Let’s assume a policyholder has paid ₹50,000 per year for 5 years in a 20-year policy.

• Total premiums paid: ₹2,50,000
• First-year premium: ₹50,000
• Surrender value factor (assumed): 30%
• Accrued bonus: ₹20,000

Surrender Value = (₹2,50,000 – ₹50,000) × 30% + ₹20,000
Surrender Value = ₹60,000 + ₹20,000 = ₹80,000

LIC Surrender Value After Different Time Periods

• Most LIC policies acquire surrender value after 3 full years of premium payments.
• The surrender value is usually 30% of the total premiums paid (excluding first-year premium).

Surrender Value After 10 Years

• If you surrender your LIC policy after 10 years, the surrender value is much higher.
• Special surrender value and accrued bonuses increase over time, making the payout better than surrendering earlier.

LIC Surrender Value Calculator – How It Works?

• Instant estimation of surrender value.
• Provides calculations for different LIC policies.
• The policy allows optimization based on the period, premium amount and tenure.

• Enter your policy name and premium details.
• Provide the number of years completed in the policy.
• The calculator will generate an estimated surrender value.

Online LIC Surrender Value Calculator

There are many online tools available that help policyholders to calculate the surrender value of their LIC policies immediately. Some popular platforms include:

• LIC’s official website
• Third party insurance calculator websites
• Mobile apps for LIC surrender value calculations

These online tools eliminate the need for manual calculations and provide quick and accurate results.

LIC Surrender Value Calculator for Different Plans

Different LIC policies have different surrender value calculations. Below are some popular plans and how their surrender value is determined.

1. LIC Jeevan Anand Plan 149 Surrender Value Calculator

• The surrender value for Jeevan Anand 149 is based on total premiums paid and the surrender factor.
• Bonus accrued is also added to the surrender value.
• This plan continues to provide coverage even after maturity, so surrendering it may not be the best option.

2. LIC Jeevan Anand 815 Surrender Value Calculator

• Works similarly to Jeevan Anand 149.
• The surrender value increases with time, especially after 10 years.
• Special surrender value is usually higher than the guaranteed surrender value.

3. LIC Jeevan Saral Plan 165 Surrender Value Calculator

• LIC Jeevan Saral’s surrender value is different from traditional LIC plans.
• It is calculated using the maturity sum assured rather than just total premiums paid.
• The plan has a loyalty bonus which is included if surrendered after 10 years.

4. LIC Jeevan Labh 836 Surrender Value Calculator

• The guaranteed surrender value is a percentage of total premiums paid.
• The special surrender value may include a portion of bonuses.
• Surrendering this policy before 10 years results in lower returns.

5. LIC Jeevan Umang Surrender Value Calculator

• Since Jeevan Umang is a whole-life plan, surrendering it early results in a lower payout.
• It is best to keep this plan for long-term financial benefits.
• Special surrender value may apply after 3 years.

LIC Surrender Value Calculator Excel – How to Use It?

Some policyholders prefer using Excel sheets to calculate LIC surrender value manually. Here’s how you can do it:

Steps to Create a LIC Surrender Value Calculator in Excel

1. Open Microsoft Excel and create columns for:
   • Policy name
   • Annual premium
   • Number of years completed
   • Surrender value factor
   • Accrued bonus
2. Enter the surrender value formula in a cell:

= (Total Premiums Paid – First Year Premium) * Surrender Value Factor + Accrued Bonus

3. Input different values for various policies and compare results.

This method helps users customize calculations based on their specific policy details.

LIC Surrender Value Calculator Apps

Many mobile apps allow LIC policyholders to calculate the surrender value on the go. Some of the best apps include:

• LIC Surrender Value Calculator (Android & iOS)
• Policybazaar LIC Surrender Value Tool
• MyLIC – Official LIC App
• Insurance Policy Manager Apps

These apps provide real-time results and are useful for policyholders who frequently check their policy values.

LIC offers an easy way for customers to check their policy’s surrender value online. Follow these steps:

1. Visit the official LIC website (www.licindia.in).
2. Log in to your LIC account using your policy details.
3. Go to the Policy Status section.
4. Click on Surrender Value Estimate.
5. The website will display the current surrender value based on your policy tenure and payments.

This method is quick, accurate, and avoids the need for manual calculations.

Financial Implications

• Surrendering a LIC policy early results in low returns.
• You might lose bonuses and additional benefits.
• The amount received is often less than the total premiums paid.

Alternative Options to Consider

• Instead of surrendering, consider taking a loan against the policy.
• Convert the policy into a paid-up policy to keep it active with reduced benefits.
• Check for partial withdrawal options if available.

LIC Market Plus 181 Surrender Value Calculation

LIC Market Plus 181 is a unit-linked plan, and its surrender value depends on the NAV (Net Asset Value) of the fund.

• The value is calculated as:
  Surrender Value = Number of Units × NAV
• If surrendered early, charges may apply, reducing the final payout.

Alternatives to Surrendering a LIC Policy

If you’re thinking about surrendering your LIC policy, consider these alternatives first:

1. Loan Against LIC Policy

• Many LIC policies allow you to take a loan instead of surrendering.
• The loan amount is up to 90% of the surrender value.

2. Convert Policy to a Paid-Up Plan

• A paid-up policy means you stop paying premiums but still get benefits at maturity.
• The sum assured reduces but remains in effect.

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