HomeLife InsuranceLIC Surrender Value After 10 Years Calculator: Details

LIC Surrender Value After 10 Years Calculator: Details

When it comes to life insurance, LIC (Life Insurance Corporation of India) has been a trusted name for decades. One crucial aspect policyholders should be aware of is the LIC surrender value after 10 years. This guide will talk about the details of LIC surrender value, what you need to know before calculating it, and how it’s determined. We’ll also provide a sample illustration using the LIC surrender value after 10 years calculator.

Also read: LIC Jeevan Saral Plan 165 Maturity Calculator

What is the LIC Surrender Value?

The surrender value of a LIC policy means the sum that the policyholder is entitled to receive if they opt to terminate the policy before its designated maturity date or stop paying the premium. This value will depend on the duration for which the policy was active and the number of premiums you pay. It’s important to understand that the surrender value is typically lower than the total premiums paid, as administrative costs and charges are associated with early termination.

It is advisable to opt for the surrender value only when you urgently need money. However, you should know the exact amount you will get when you surrender your LIC policy. Though there is no official LIC surrender value after a 10-year calculator, you can follow this guide to get an estimated amount.

Also read: 5 Things to Know Before Buying SBI Term Insurance

Things to Know Before Calculating LIC Surrender Value After 10 Years

Before you calculate the LIC surrender value after 10 years, there are a few key considerations:

  • Policy Type: Different policies have varying surrender value calculations. Be sure to know the specific terms and conditions of your policy.
  • Premium Payment Period: This refers to the number of years you’ve consistently paid premiums.
  • Policy Term: This is the duration the policy is active, which may vary from policy to policy.

1. Terms of the LIC Surrender Value

  • You can claim the lic surrender value after 10 years only if you have made the minimum premium payment of 3 years.
  • The money you will get is directly proportional to the premiums you pay.
  • The bonus will also carry a surrender value.
  • The policy term and year you surrender your policy will be factored in for your surrender value calculation.
  • The lic surrender value after 10 years calculator considers the surrender value factors separate from released bonuses and paid premiums.
  • The lic surrender value will not include the 1st year’s and the rider’s premium or other taxes.

2. What Do You Get After LIC Policy Surrender?

When you continue your policy for 10 years and decide to surrender it, you will be given a Special Surrender Value or Guaranteed Surrender Value. Whichever amount comes up to be the higher through the lic surrender value after 10 years calculator, you will be entitled to receive that.

This amount is calculated as per the terms and conditions of your specific policy. It is paid out after deducting any applicable charges or penalties. It’s important to note that surrendering a policy is a significant decision and may have financial implications, so it’s recommended to consider your options and consult with a financial advisor carefully.

3. How Is LIC Surrender Value Calculated?

The LIC surrender value is determined by a formula that considers various factors. While the exact formula may vary based on the policy type and terms, it generally includes considerations for premiums paid, policy term, and the number of years the policy has been active. You can consult with your LIC agent or refer to the policy document for the specific formula applicable to your policy.

LIC Surrender Value After 10 Years Calculator

Calculating the Surrender value is quite easy. A small guide is shared below:

To get Guaranteed Surrender Value:

  • Take the total premium paid.
  • Multiply it by the guaranteed surrender value factor.
  • Add the bonus multiplied by the surrender value factor for the bonus.

To get Special Surrender Value:

  • Multiply the original sum assured by the ratio of premiums paid to premiums payable.
  • Add the total bonus received.
  • Multiply this sum by the surrender value factor.

For precise numbers, please refer to your brochure or policy document. Insert these values into the respective formulas. This will give you the Guaranteed LIC surrender value after 10 years for your specific policy.

Sample Illustration Using LIC Surrender Value After 10 Years Calculator

Let’s consider a hypothetical scenario where you’ve purchased LIC’s New Jeevan Anand policy with the following details:

  • Policy Term: 20 years
  • Sum Assured: Rs. 10,00,000
  • Annual premium (calculated using the LIC Premium & Maturity Calculator): Rs. 54,869
  • Bonus Rate: Rs. 50 per Rs. 1000 of the sum assured

Suppose you decide to surrender the policy in the 11th year. As a result:

  • Total Premiums Paid: Rs. 5,48,690
  • Total Bonus Accrued: Rs. 5,00,000 (50 x 10,00,000/1,000) x 10)
  • The guaranteed surrender value factor for a policy term of 20 years and policy surrender in the 11th year is 60%, as specified in LIC New Jeevan Anand’s brochure.
  • Additionally, the guaranteed surrender value factor for bonuses stands at 18.6%.

By applying this information to the formula for calculating the LIC Guaranteed Surrender Value after 10 years, the result is (Rs. 5,48,690 multiplied by 60%) plus (Rs. 5,00,000 multiplied by 18.6%), which equals Rs. 4,22,214.

This amount represents the LIC surrender value you would receive if you choose to surrender your policy after 10 years.


Understanding the lic surrender value is crucial to managing your insurance investments. It allows you to decide whether to continue with the policy or explore other options.

While the calculator provides a general estimate of your LIC surrender value after 10 years, it’s important to note that there are certain charges that LIC does not account for in this calculation. Additionally, keep in mind that the bonus rate may vary over time. For the most accurate and up-to-date information, contacting LIC’s customer support is advisable.

LIC Surrender Value After 10 Years Calculator – FAQs

Can I surrender my LIC policy before completing the premium payment period?

Answer: Yes, you can surrender your LIC policy at any time, but the surrender value will be calculated based on the terms and conditions of your specific policy.

Are there any charges associated with surrendering an LIC policy?

Answer: Yes, there may be charges and penalties associated with surrendering an LIC policy. These will be deducted from the surrender value.

Ajeet Sharma, the founder of Financegab and a well-known name in the field of financial blogging. Blogging since 2017, he has the expertise and excellent knowledge about personal finance. Financegab is all about personal finance which aims to create awareness among people about personal finance and help them to make smart, well-informed financial decisions.


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