How to Check LIC Surrender Value: A Step-by-Step Guide

What Is LIC Surrender Value?

The LIC surrender value is the amount policyholders receive when they cancel their policy before its maturity. It is calculated by deducting certain charges from the policy’s cash value. However, LIC discourages policy surrender as the payout is typically lower than the premiums, especially in the early years.

How to Check LIC Surrender Value?

There are several ways to check the surrender value of your LIC policy:

Online via LIC Portal

LIC offers a user-friendly online platform for policyholders:

Step 1: Visit LIC’s official website.

Step 2: Register as a new user with your policy details or log in using your credentials.

Step 3: Navigate to the ‘Policy Status’ section.

Step 4: Select the policy you want to check the surrender value.

Step 5: The surrender value (if available) will be displayed along with other policy details.

Using LIC Mobile App

The LIC mobile app, available on Android and iOS, provides an easy way to check your surrender value:

• Download the app from your device’s app store.

• Log in using your LIC portal credentials.

• Go to the ‘Policy Details’ section and view the surrender value.
  
  

1. Contact LIC Customer Care

   You can call the LIC customer care helpline for assistance:

   • Toll-free number: 1800-33-4433.

   • Provide your policy details to the representative and request the surrender value.

2. Consult Your LIC Agent

   If you purchased your policy through an LIC agent, they can help calculate the surrender value and explain the financial implications.

3. Using the LIC Surrender Value Calculator

   The LIC Surrender Value Calculator is a useful tool for estimating the surrender value of your LIC policy. Designed for those considering policy surrender, this calculator provides a quick and accurate estimate of the benefits you may be entitled to. By entering key details about your policy, such as premiums paid and the policy term, you can obtain an approximate surrender value within seconds, all from the comfort of your home.

How Is LIC Surrender Value Calculated?

The surrender value depends on the following:

• Guaranteed Surrender Value (GSV): This is 30% of total premiums paid (excluding the first-year and rider premiums).

• Special Surrender Value: Calculated based on the paid-up value, bonuses, and a surrender value factor.

How to Surrender LIC Policy Before Maturity?

The steps below will help you surrender the LIC Policy. Take a look:

Step 1: Visit the LIC Branch or Website:

Step 2: Download the “Surrender Discharge Voucher” (LIC Form No. 5074).

Step 3: Complete the form and attach the required documents.

Step 4: Submit the form at the nearest LIC branch.

Step 5: Once all the documentation is completed, the surrender value will be credited to your bank account within 7-10 days.

Key Factors to Consider Before Surrendering

• Surrender Charges: These can significantly reduce your payout.

• Premiums Paid: Longer durations result in higher surrender values.

• Future Insurance Needs: Surrendering cancels your life cover.

• Impact on Bonuses: Any accumulated bonuses might be forfeited.

Wrapping It Up

Surrendering your LIC policy is a significant decision. Use online tools like the LIC portal, LIC mobile app, or LIC calculators to estimate your surrender value. Before proceeding, evaluate financial needs, future insurance coverage, and associated penalties.

By understanding your options and the surrender process, you can make a well-informed decision aligned with your financial goals.

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