1. What is LIC Insurance Surrender Value?

The Guaranteed Surrender Value (GSV) is the amount payable by LIC when a policyholder voluntarily terminates the policy before maturity. It's typically 30% of the premiums paid minus the first year premium.

2. How Does the Calculator Work?

The calculator uses the standard LIC surrender value formula:

Where:

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

Explanation: The formula calculates 30% of the premiums paid after deducting the first year's premium, as per standard LIC policy terms.

3. Importance of Surrender Value Calculation

Details: Knowing the surrender value helps policyholders make informed decisions about continuing or terminating their policy, especially in financial emergencies.

4. Using the Calculator

Tips: Enter total premiums paid and first year premium in rupees. Both values must be positive numbers, and first year premium cannot exceed total premiums.

5. Frequently Asked Questions (FAQ)

Q1: When does a policy acquire surrender value?
A: Typically after payment of premiums for at least 3 full years in case of regular premium policies.

Q2: Are there any charges deducted?
A: Yes, surrender charges may apply which vary by policy type and duration.

Q3: Is the surrender value taxable?
A: Generally no, unless the surrender value exceeds the total premiums paid.

Q4: Can I get loan against my policy instead?
A: Yes, most LIC policies allow loans up to a percentage of the surrender value.

Q5: Does this apply to all LIC policies?
A: Most traditional plans follow this formula, but unit-linked plans may have different surrender value calculations.