Q: how to calculate surrender value of LIC policy?

POSTED BY Irshad ON February 16, 2011 5:16 pm COMMENTS (6)


Is the the following formula correct to calculate the amount we get if we surrender LIC policy?

Original sum assured * (Number of premiums paid / Total number of premiums that were required to be paid) + Accrued bonuses * Surrender value factor

Jeevan Surabhi (25 yr ) – 100000 * ( 8 / 18) + 37300 * 0.3 = 44444.44 + 11190  = 55634.44

Jeevan Anand              – 125000 * ( 6 / 16) + 26375 * 0.3 = 46875.00 + 7912.5 = 54787.5



6 replies on this article “Q: how to calculate surrender value of LIC policy?”

  1. Yogita says:

    I have lived Jeevan Anand policy of sum assured 1000000 and thereafter I will get 55000 per annum till lifelong. Uptill now I paid 11 premium of 50000 per annum..now 9 premium is yet to pay. Will u suggest me to continue this policy?
    If i surrender it what amount I will get?

    1. You need to find out what is the return you are getting on this policy. I dont think its much % wise

      If you want to know the surrender amount, the best option would be to talk to LIC on this and get the surrender amount !

  2. Jagadeesh says:

    We have a jeevan tarun policy for our four year child. Sum assure is one lakhs & age at policy is four year. If we required amount for marriage & other expenses at 21 year of age of children what to do. Close the policy? Surrender the policy? Please suggest

    Thanking you

    1. I think you should close the policy . Mutual funds are the right investment products for creating long term wealth. You should rather do the SIP in that.
      In case you are new to this, my team can help you with setting up everything from start to end. Just fill up http://jagoinvestor.dev.diginnovators.site/start-sip

  3. Abhishek says:

    Register ur policies on licindia.com and you can get this information.


    1. Kalpit says:

      They do not provide any such info even if you have registered your policies with licindia

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