Surrender value is the amount an insurance company pays to a policyholder when they decide to terminate their policy before its maturity date. It represents the savings portion of your policy that the insurer returns upon early termination.

For most LIC policies, surrender value becomes payable only after completion of at least 3 years of premium payments.

There are two types of surrender values:

• Guaranteed Surrender Value (GSV): A percentage of total premiums paid minus first-year premium and any survival benefits already paid.
• Special Surrender Value (SSV): Calculated based on the paid-up value of your policy and includes any bonuses accrued.

LIC pays the higher of GSV or SSV to policyholders.

• Policy type (Endowment, Money Back, ULIP, etc.)
• Policy term and premium paying term
• Number of years for which premiums have been paid
• Total premiums paid till date
• Any bonus accrued (for participating policies)
• Current market value of investments (especially for ULIPs)

Surrendering a policy generally results in lower returns compared to staying invested until maturity. Consider these alternatives before surrendering:

• Converting to a paid-up policy
• Taking a loan against the policy
• Reviving a lapsed policy

Always consult with an LIC agent or financial advisor before making this decision.

This calculator provides an estimate based on general surrender value calculation principles. Actual surrender values may vary based on your specific policy's terms, conditions, and additional factors not accounted for in this calculator. For the exact surrender value of your policy, please contact your LIC branch office or agent.