LIC Jeevan Labh (Plan 836) Surrender Value Calculator

The LIC Jeevan Labh Surrender Value Calculator estimates the amount payable to the policyholder upon voluntary termination of the policy before maturity. Simply enter your Annual Premium (INR), Sum Assured (INR), and other policy details to calculate your Surrender Value and related metrics. This calculator helps policyholders better understand the potential cash value of their plan if they stop paying premiums early. This calculator also calculates Guaranteed Surrender Value (GSV) and Special Surrender Value (SSV).

Annual Premium (INR) Enter the yearly premium amount you pay (e.g., 50000)

Sum Assured (INR) Enter the total insurance coverage amount (e.g., 760000)

Policy Term (years) Enter the total duration of the policy (e.g., 20)

Premium Paying Term (years) Enter the number of years you pay premiums (e.g., 16)

Years Completed (years) Enter how many premiums you have paid (e.g., 8)

Total Bonuses Accrued (INR) Enter the total bonus amount declared so far (e.g., 120000)

Surrender Factors (%)

Enter GSV and SSV percentages (e.g., 30 and 40)

Quick Examples:

Mid-term Surrender Early Surrender

Calculate Clear

This calculator is for educational purposes only. It is not intended to provide financial advice. Consult a financial advisor or LIC agent for personalized guidance regarding policy decisions.

What Is Surrender Value

Surrender Value is the amount the insurance company pays to the policyholder if they decide to exit the policy before its maturity date. When you stop paying premiums and cancel the plan, the company returns a specific portion of the premiums paid, minus any charges. This value is usually lower than the total amount you have paid in premiums, especially in the early years of the policy. It represents the cash value you can take back when you discontinue the plan.

How Surrender Value Is Calculated

Formula

To find the Surrender Value, the calculator first checks two different methods. The Guaranteed Surrender Value (GSV) looks at the premiums you paid, excluding the first year, and applies a fixed percentage factor. The Special Surrender Value (SSV) considers the reduced insurance cover you have earned plus any bonuses added, applying a different percentage factor. The calculator then compares these two amounts and gives you the higher number, as the company generally pays the greater of the two values.

Why Surrender Value Matters

Knowing your surrender value helps you make informed choices if you are struggling to pay premiums or need money for an emergency. It shows you exactly how much cash you might get back, allowing you to weigh the pros and cons of keeping the policy versus cancelling it.

Why Understanding Losses Is Important for Financial Planning

Surrendering a policy early often leads to a financial loss because you may receive less money than you paid in premiums. Understanding this potential loss is vital so you do not make a hasty decision that hurts your long-term savings goals. It is generally recommended to consider surrendering only as a last resort, as staying invested often yields better returns over time.

For Short-Term Holders

If you have held the policy for only a few years, the surrender value may be very low or even zero. In the early years, a large part of your premium goes toward administrative costs and agent commissions. Short-term holders should be aware that exiting the plan too soon might result in getting almost nothing back compared to what was paid.

For Long-Term Holders

If you have paid premiums for a longer time, the surrender value typically increases because more premiums are eligible for refund and bonuses have accumulated. Long-term holders may find that the accumulated value offers a useful lump sum, but they should compare this amount against the death benefit and maturity benefit they would give up by cancelling the policy.