LIC Surrender Value Calculator
LIC Surrender Value Calculator is a tool for policyholders looking to calculate the amount a policyholder receives when they terminate their insurance policy before its maturity date. Whether you want to calculate the LIC surrender value after 5 years, the LIC surrender value after 3 years, or any year, the surrender value of the LIC policy has:
- Total Premiums Paid: The sum of all premiums paid until surrender.
- Accumulated Bonuses: Any bonuses accrued on the policy.
- Sum Assured: The guaranteed amount payable at maturity.
LIC Surrender Value Calculator
How to Use the Surrender Value Calculator of LIC
- Select Your Policy: Choose from various LIC plans listed in the dropdown menu.
- Enter Sum Assured: Input the total sum assured amount.
- Choose Premium Frequency: Select how often you pay premiums (monthly, quarterly, etc.).
- Input Premium Amount: Enter your premium amount based on your selected frequency.
- Specify GST Inclusion: Indicate whether your premium includes GST.
- Enter Years Paid: Input the number of years you have been paying premiums.
- Calculate: Click “Calculate Surrender Value” to see your estimated surrender value.
FAQs on LIC Surrender Value
Q1: What is the minimum number of years I must pay premiums to get a surrender value?
You need to have paid premiums for at least three years to be eligible for a surrender value and for policy taken in 2024, you need to pay at least one year premium.
Q2: Are bonuses guaranteed in LIC policies?
Bonuses are not guaranteed, they depend on LIC’s performance and are declared annually by the corporation.
Q3: Will I receive my full sum assured if I surrender my policy?
No, when you surrender your policy, you will receive only the surrender value, which may be less than or equal to the sum assured depending on various factors..
Q4: Can I reinstate my policy after surrendering it?
Once a policy is surrendered, it cannot be reinstated; however, you may consider purchasing a new policy if needed.
Q5: Can I get a loan against my LIC policy instead of surrendering it?
Yes, if you need funds, you may be eligible to take a loan against your LIC policy instead of surrendering it. This allows you to retain the policy benefits while meeting immediate financial needs.
Q6: What documents are required to surrender an LIC policy?
You typically need to submit the original policy bond, a surrender request form, an identity proof, and bank details for the payout. Some branches may ask for additional documents.
Q7: How long does it take to receive the surrender value after submission?
Once you submit all the required documents, it usually takes about 7 to 10 business days to process the surrender and credit the amount to your bank account.
Q8: Can I partially surrender my LIC policy??
No, LIC policies generally do not allow partial surrenders. You must fully surrender the policy if you choose to terminate it.
Q9: Are there any penalties for surrendering an LIC policy?
Yes, early surrender often incurs penalties, such as reduced payout amounts due to administrative fees and other charges. The surrender value calculator can help you understand the deductions.
Q10: Can I surrender a policy purchased through an LIC agent?
Yes, you can surrender any LIC policy, whether purchased through an agent or directly. The process remains the same. Your LIC agent can also guide you through the surrender process if needed.