1. What is Guaranteed Surrender Value?

The Guaranteed Surrender Value (GSV) is the minimum amount a policyholder will receive if they surrender their LIC policy after paying premiums for at least three full years. It's calculated as 30% of the total premiums paid minus the first year premium.

2. How Does the Calculator Work?

The calculator uses the GSV formula:

Where:

• \( Total\ Premiums \) — Sum of all premiums paid (rupees)
• \( First\ Year\ Premium \) — Premium paid in the first year (rupees)

Explanation: The formula accounts for the fact that first year premiums typically include higher acquisition costs for the insurer.

3. Importance of GSV Calculation

Details: Knowing the GSV helps policyholders make informed decisions about surrendering their policies and understanding the minimum amount they can expect to receive.

4. Using the Calculator

Tips: Enter total premiums paid and first year premium in rupees. Both values must be valid (total premiums > first year premium ≥ 0).

5. Frequently Asked Questions (FAQ)

Q1: When does GSV apply?
A: GSV applies after 3 full years of premium payments. Before that, surrender value may be lower or zero.

Q2: Is GSV the final surrender value?
A: No, GSV is the minimum. Actual surrender value may be higher if bonuses are included.

Q3: Are there tax implications?
A: Yes, surrender values may be taxable depending on policy type and surrender timing.

Q4: Can I get a loan instead of surrendering?
A: Many LIC policies allow loans up to 90% of surrender value, which may be better than surrendering.

Q5: How accurate is this calculator?
A: This calculates the minimum GSV. Contact LIC for exact surrender value as it may include bonuses.