Step-by-Step Guide to Calculating LIC Policy Surrender Value Online

A Life Insurance Corporation (LIC) policy is one of the longest financial commitments you ever make. However, what if your life situation changes and you want to surrender the policy before it is fully paid up? In that case, it is very important to know the LIC policy surrender value. Unfortunately, the majority of policyholders are blind about what they will be given if they surrender their policy prematurely.

However, the tools like LIC surrender value calculator have made it very simple and quick to calculate this amount. Here are the steps to check LIC policy surrender value online, what many key factors that come into play in influencing it are and provide you with an overview of some of the top tools out there and one of them is a calculator for LIC surrender value after 10 years also.

What is LIC Policy Surrender Value?

LIC policy surrender value is the amount you get from LIC when ever terminate your policy before maturity. This option (able) is only useful in case you have been contributing premiums for additional than three consecutive ages. Yet, it is typically lower than the gross premium, and differs by the policy type and term.

Why Do People Surrender LIC Policies?

What is the meaning of surrendering a policy…and why might somebody wish to?

• Financial emergencies
  
• Underperforming policy
  
• Better investment opportunities
  
• Switching to term insurance
  

Whatever be the case this is why you should Check how much your returns would get cheaper using a surrender value calculator before finally deciding to Surrender or cash the policy in according to CoinDCX News.

Types of LIC Surrender Value

LIC calculates surrender value under two main heads:

1. Guaranteed Surrender Value

This is a determined value by LIC and normally between 30% to 90% of total premium excluding the first year premium and rider premiums.

2. Special Surrender Value

LIC announces this value based on the performance of the policy, tenure and bonuses attached to it.

Step-by-Step: How to Calculate LIC Policy Surrender Value Online

Thanks to the LIC surrender value calculator, you no longer need to manually calculate complex values. Here’s a clear step-by-step guide:

Step 1: Gather Your Policy Details

Before using any calculator, keep the following ready:

• Policy number
  
• Policy start date
  
• Premium amount
  
• Number of premiums paid
  
• Term of the policy
  
• Policy type (Endowment, Money Back, etc.)
  
• Bonus accrued (if any)
  

Step 2: Visit an LIC Surrender Value Calculator Website

You can access an online LIC surrender value calculator from the following:

• LIC official website (if available)
  
• Trusted insurance aggregator websites like Policybazaar, BankBazaar, InsuranceDekho
  
• Financial tools platforms that offer LIC policy surrender value calculators
  

Make sure the website is credible and secure.

Step 3: Enter Policy Information

Input the data collected in Step 1 into the calculator, including:

• Policy term and type
  
• Total premium paid to date
  
• Policy duration completed
  
• Accrued bonus (if applicable)
  

Step 4: Choose “Calculate”

Click the “Calculate” button to generate your LIC policy surrender value. Most tools also show a comparison between guaranteed and special surrender values.

Step 5: Interpret the Results

The tool will typically show:

• Total premiums paid
  
• Bonus accrued
  
• Guaranteed surrender value
  
• Special surrender value
  
• Final surrender value you are eligible to receive
  

Why Use an LIC Surrender Value Calculator?

Using a LIC surrender value calculator offers multiple benefits:

• Saves time: No manual formulas or paperwork.
  
• Instant estimate: Get results within seconds.
  
• Financial clarity: Helps with better decision-making.
  
• Accurate projections: Updated based on current LIC norms.
  

LIC Surrender Value After 10 Years: What You Should Know

If you have completed ten years on the policy, this LIC surrender value after 10 years calculator will provide a reasonable figure viz.

• You’ve likely accrued substantial bonuses.
• You’ve crossed the 3-year threshold.
• The unique surrender value should be higher.

For policies already in force this is likely to be between 70-90% of the total premiums paid over the term of the policy but may vary according to type of policy and any bonuses.

Manual Formula (If You Want to Double-Check)

If you’re curious about the math behind the scenes:

Surrender Value = (Total Premiums Paid – 1st Year Premium) × Surrender Value Factor + Bonus

Surrender Value Factor is provided by LIC based on the number of years the policy has run.

However, it’s always better to use an online LIC policy surrender value calculator to avoid errors.

Pro Tips Before Surrendering Your LIC Policy

• Check alternate options: You may convert the policy into a paid-up one instead.
  
• Consult LIC agent: They may provide bonuses or loyalty additions info.
  
• Tax implications: Surrendering may result in tax liabilities.
  
• Evaluate opportunity cost: Will you benefit more by surrendering or continuing?
  

Recommended Surrender Value Calculators

1. Policybazaar’s LIC Surrender Calculator
   
2. InsuranceDekho LIC Value Tool
   
3. BankBazaar’s LIC Surrender Estimator
   
4. MaxLife & HDFC Life tools (for comparison)
   
5. Excel-based LIC surrender value calculator for offline use

Common Mistakes to Avoid

• Not including bonus values
  
• Using an outdated surrender factor
  
• Assuming surrender value is same as maturity amount
  
• Not checking with LIC before surrendering
  
• Using unreliable online tools

Conclusion

Surrendering an LIC policy involves a lot of money and it is always suggested that one should plan on how to go about doing the same. Now with the help of LIC surrender value calculator, you will get all the information at your home only. Make a cautious comparison and calculate whether it may be 3 years, or after 10 years, this LIC surrender value calculator will help to provide you with information on how much money is at stake if you are going to encash your policy before time.

So, it is very easy to know the surrender value of your LIC policy either on online tools with a little homework.

FAQs: LIC Policy Surrender Value