1. What is LIC Pension Surrender Value?

The Guaranteed Surrender Value (GSV) for LIC Pension plans is typically 30% of the total premiums paid minus the first year premium. This is the minimum amount you would receive if you surrender your policy.

2. How Does the Calculator Work?

The calculator uses the standard LIC surrender value formula:

Where:

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

Explanation: The formula calculates 30% of the premiums paid after excluding the first year's premium.

3. Importance of Surrender Value Calculation

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

4. Using the Calculator

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

5. Frequently Asked Questions (FAQ)

Q1: When can I surrender my LIC pension policy?
A: Typically after 3 years of premium payments, but check your specific policy terms.

Q2: Is the surrender value taxable?
A: Surrender values may be taxable if received before completing 5 years, under Section 80C of Income Tax Act.

Q3: Are there any penalties for surrendering early?
A: Yes, early surrender typically results in lower returns compared to policy maturity.

Q4: Can I get a loan against my LIC pension policy instead?
A: Yes, most LIC policies allow loans after acquiring surrender value, which might be a better option.

Q5: Does this calculator work for all LIC pension plans?
A: This provides a general estimate. Actual surrender values may vary by specific plan and policy duration.