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

What Is LIC Surrender Value?

The LIC surrender value is the amount paid to the policyholder when they decide to discontinue the policy before its maturity and encash it from the LIC of India. Surrender value is only paid after completing 3-year premiums to LIC.

What is the Surrender Value Factor (SVF)?

The Surrender Value Factor (SVF) is the percentage of your policy’s value that you’ll get if you decide to cancel or surrender it early. This factor increases over time as you pay premiums, so the longer you keep the policy, the more you can get if you surrender it. After you’ve paid a significant amount of premiums, the SVF usually stabilizes around 90% of your policy’s guaranteed value and any accumulated bonuses.

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 LIC policy 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 of LIC 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.

Before surrendering LIC policy, knowing how to calculate the surrender value is important. Let’s understand the benefits and how to use:

Benefits of Using an LIC Surrender Value Calculator

If you're considering surrendering your LIC policy, understanding its potential payout is crucial. Using an LIC surrender value calculator can provide you with a quick estimate of how much you might receive if you decide to cancel your policy early. 

Whether you're looking to check the LIC surrender value after 3 years, or exploring the surrender value of LIC policies in general, these tools help you make informed decisions. You can even use an LIC surrender value calculator app or check the LIC surrender value chart online to get a clearer picture of your options.

Here are some key benefits of using an LIC surrender value calculator:

• Quick Financial Assessment

  Helps you estimate how much you’ll get if you surrender your policy.

• Informed Decision Making

  Knowing the LIC policy surrender value helps you decide if it’s the right option for your financial situation.

• Exploring Alternatives

  If the value is low, it encourages considering other options, such as taking a loan against the policy’s value.

• User-Friendly

  The surrender value calculator is simple to use and doesn’t require advanced financial knowledge.

How to Use LIC Surrender Value Calculator? 

Step 1: Enter your policy details such as sum assured, premium amount, policy term, number of premiums paid and type of policy. 

Step 2: The calculator will estimate the surrender value 

Step 3: Consider your estimated surrender value and whether it fulfils your financial needs.

Note: You can also check other investment options like Systematic Investment Plans (SIPs) for long-term wealth creation. Use SIP Calculator to estimate potential returns and make an informed financial decision.

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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