## Result

Guaranteed Surrender Value (GSV): ₹0

Special Surrender Value (SSV): ₹0

**LIC Surrender Value Calculator:** This surrender value calculator tool has been developed for those people who want to terminate their LIC policy before completing time. They want to know their surrender value amount after the policy termination, therefore this tool is built based on the simple mathematical formula of the surrender value calculator that helps a policyholder to calculate their surrender value amount.

## What is the Surrender Value?

The surrender value of a Life Insurance Corporation (LIC) policy is the amount a policyholder receives if they decide to terminate or "surrender" their policy before the complete period of its maturity. The surrender value amount depends on several factors, such as the type of policy, how much has been received by the bonus policyholder, and how much he has paid the LIC premium in several years.

### Key Points of Surrender Policy

**Guaranteed Surrender Value:**This is typically a percentage of the total premiums paid minus the first-year premium. This percentage increases with the number of years the policy has been active. For most policies, the surrender value is guaranteed after the policy has been in force for at least three years. if you surrender before this period then LIC gives you a low surrender value.**Special Surrender Value:**This is usually higher than the guaranteed surrender value and depends on the policy term, the number of premiums paid, and any bonuses accrued.**Impact of Surrendering Early:**If a policy is surrendered early, especially within the first few years, the surrender value might be significantly lower than the total premiums paid, resulting in a financial loss.**Policy Type Matters:**For example, the surrender value calculation for endowment policies, money-back policies, or term insurance might differ.

### How Does Work LIC Surrender Value Calculator | How to Calculate

The exact surrender value of the LIC policy's output depends on various factors as described, So this tool will help you to calculate a roughly or "estimated" surrender value of the policy that you held in LIC. Let's calculate it step by step.

- First of all, gather all paid amount information of your premium that you have done in LIC.
- If you fill proper amount and date you will get the exact surrender value of your lic termination.
- First, fill in the total amount that you paid so far.
- Second, the Date when you started your policy, and how many years you have paid the premium.
- And, last, How much did you acquire as a bonus?

**Guaranteed Surrender Value (GSV)**

**Formula:**

GSV = Total Premiums Paid×GSV Percentage×Number of Years Premium Paid/Policy Term

**Total Premiums Paid:**Sum of all premiums paid by the policyholder.**GSV Percentage:**Typically ranges from 30% to 50%, depending on the policy and its terms.**Number of Years Premium Paid:**Total years for which premiums have been paid.**Policy Term:**The total duration of the policy.

**Special Surrender Value (SSV)**

**Formula:**

**Guaranteed Surrender Value:**As calculated above.**Accrued Bonuses:**Bonuses declared by the insurance company that have accumulated over the years.

### 3. **Example Calculation**

Let’s assume:

**Total Premiums Paid:**₹100,000**GSV Percentage:**30%**Number of Years Premium Paid:**10 years**Policy Term:**20 years**Accrued Bonuses:**₹20,000

**Guaranteed Surrender Value:**

GSV=(100,000×0.30)×(10/20)=30,000×0.5=₹15,000

**Special Surrender Value (SSV):**

SSV=15,000+20,000=₹35,000

In this example, the surrender value would be ₹35,000. if your policy is under the special surrender value.

**Try Also:** **SIP Calculator**, **Post Office SIP Calculator 2024**

#### Frequently Asked Questions:

### What is the lic surrender value calculator formula?

Guranteed Surrender Value (GSV) = Total Premiums Paid×GSV Percentage×Number of Years Premium Paid/Policy Term

### What are the new rules for surrender value?

Special Surrender Value (SSV), It's a new concept of life insurance.**Formula:**

Special Surrender Value (SSV)=Guaranteed Surrender Value+Accrued Bonuses

#### Conclusion:

This LIC surrender value calculator tool will help you calculate the estimated surrender value of your LIC policy. here you can calculate your guaranteed and special surrender value that every policyholder wants to calculate.