LIC Surrender Value After 10 Years Calculator

What is the LIC Surrender Value After 10 Years Calculator?

The LIC policy surrender value calculator helps users to enter policy details such as name of plan, policy term, sum assured, annual premium, premium frequency, and years of premium amount paid. On the basis of these details, it provides an approximate value that you can expect in case of surrendering the policy.

How does LIC Surrender Value After 10 Years Calculator Work?

Using the LIC surrender value calculator, you can calculate the surrender value you will get after 10 years. You have to follow some simple steps to calculate your surrender value after 10 years.

Step 1: Enter Policy Details such as Policy Start Year, Policy Term, Premium Payment Mode, and Last Premium Paid.

Step 2: Enter Cover Details

• Sum Assured: The amount of insurance cover provided by the policy (in lakhs)

• Annual Premium: The amount of premium to be paid yearly

• Accrued Bonus: Bonus accumulated till now (if any)

The calculator will show you:

• Surrender Value The amount that may be obtained by surrendering the policy

• Sum Assured The total amount covered by the policy

• Premium Paid Till Date The total amount of premiums paid so far

What are the Types of LIC Surrender Values?

There are 2 different types of LIC Surrender values:

Guaranteed Surrender Value (GSV):

Guaranteed Surrender Value is equal to - (total premium paid multiplied by the guaranteed surrender value factor) plus (bonus multiplied by surrender value factor for bonus).

This is the least amount that LIC is required to pay you if you forfeit your policy, as stipulated by the law. It is calculated on the basis of your premium payments and the duration for which the policy has been in force. Usually, the GSV becomes applicable when you have paid your premiums for a minimum two or three years, the exact period depending on the policy terms and conditions.

Special Surrender Value (SSV):

Special Surrender Value is equal to - (Original sum assured multiplied by (number of premiums paid / number of premium payable) + total bonus received) * surrender value factor.

LIC features a more flexible, varied SSV, which can incorporate not only the duration of the policy but also the total insured amount and any bonuses attached to the policy. If a policy has been in force for a longer time and has accumulated bonuses, the SSV is generally more than the GSV. You can also check the surrender value of LIC policies before going ahead and deciding on the basis of the information.

All the above information is in the brochure or policy document. All you have to do is place the numbers in these formulae.

Note: You should also check the benefits of term life insurance if you are planning to purchase the term insurance plan.

**Term insurance plan might be a better choice for those who are more concerned about getting sufficient financial protection than surrender benefits. Term plans are mainly focused on providing very high life coverage at lower premiums, and they don't offer surrender value.

How is the Surrender Value Calculated?

Surrender value is the payout which is the higher of the Guaranteed Surrender Value (GSV) or the Special Surrender Value (SSV) when the policy is surrendered.

Our calculator assumes that SSV is being used, which is derived from:

SSV = [{(Premiums Paid Premiums Payable) Sum Assured} + Accrued Bonus] Surrender Value Factor (SVF)

The SVF is determined by the insurer and it becomes larger with each policy year. By surrendering a policy, you are essentially giving up the coverage in exchange for a one-time payment.

How to Use LIC Surrender Value 10 Year Calculator?

The LIC Surrender Value Calculator can be operated quickly and easily. Here's how you can do it stepwise:

Step 1: Enter Your Policy Information

Select your policy from the list of options such as LICs New Endowment Plan (714) or other calculators

Give sum assured, term of the policy and frequency of premium payment, etc. for the policy.

Step 2: Enter Premium Payment Details

Provide your yearly premium amount to be paid and the number of full years for which you have been paying the premiums.

Step 3: Calculate the Surrender Value

By pressing the Calculate Surrender Value button, you will get the estimated value. This option is made available to you to find the surrender value after different durations using appropriate calculators, like 3, 5, or 10 years, etc.

Sample Illustration using LIC Surrender Value After 10 Years Calculator

Let us assume that you bought LIC’s New Jeevan Anand policy at the age of 30 years. Here are your requirements -

Policy term - 20 years

Sum assured - Rs. 10,00,000

Using the LIC Calculator, annual premium - Rs. 58,181

Bonus Rate - Rs. 50 per Rs. 1000 of the sum assured

Now, you decide to surrender the policy in the 11th year. Therefore -

The total premiums paid are equal to Rs. 5,81,810.

Total bonus accrued = ((50 x 10,00,000/1,000) x 10) equals Rs. 5,00,000.

The guaranteed surrender value factor for a policy term of 20 years and policy surrender in the 11th year is 60% (as mentioned in LIC New Jeevan Anand’s brochure).

The guaranteed surrender value factor for bonuses is 18.6%.

Putting the above data in the formula for calculating the LIC guaranteed Surrender Value after 10 Years, we get (5,81,810 multiplied by 60%) plus (5,00,000 multiplied by 18.6%), which is equal to Rs. 4,42,086.

This is the LIC surrender value you will receive if you surrender your policy after 10 years.

What are the Benefits of Using the LIC Surrender Value Calculator?

Helps with Financial Decisions

Instantly determine whether it is the perfect time to give up your policy for a more efficient financial planning

Instant Online Check

Find out the surrender value of your LIC policy immediately and directly from the official website. No more waiting for agents or dealing with paperwork.

Removes Calculation Errors

It will be done by the computer and once finished, the results will be accurate without any mistakes.

Compare Values Over Time

You may very well decide your next move on the basis of a thorough understanding of policy values at different years of continuation from the time of surrender (3, 5 or even 10) by using the feature to compare the surrender values easily.

Things to know before calculating LIC surrender value after 10 years

If you want to calculate how much money you will get if you are surrendering LIC policy before maturity, you should know certain important aspects of LIC’s surrender value benefit.

Terms of LIC Surrender Value:

• To surrender an LIC policy after 10 years, you should have paid premiums for a minimum of 2 years. Only then can you claim any surrender benefit.

• The more premiums you have paid, the more money you will return.

• Bonuses also acquire a surrender value.

• LIC of India declares surrender value factors as per the policy term and the policy year in which you are surrendering it.

• Surrender value factors are separate for premiums paid and bonuses accrued.

• Surrender value does not include the 1 year’s premium, premiums paid for riders and taxes.

LIC Resources

Summing Up!

There are several factors involved in computing the LIC surrender value after 10 years, such as the kind of policy, the premiums paid, the policy duration, bonuses, and surrender charges. It is crucial to know the provisions of your particular LIC policy before you make a decision. You should evaluate the financial consequences if you surrender your LIC policy and, at the same time, consider other alternatives like getting a loan against the policy or switching it to a paid-up policy.

Note: Check all the best term insurance plan in India.

FAQ’s