Year of Surrender	Total Premiums Paid (in INR)	Surrender Value Percentage	Surrender Value (in INR)
1	50,000	0% (Usually no surrender value in the first year)	0
2	50,000	10% (Approximate)	5,000
3	50,000	15% (Approximate)	7,500
4	50,000	20% (Approximate)	10,000
5	50,000	25% (Approximate)	12,500
6	50,000	30% (Approximate)	15,000
7	50,000	35% (Approximate)	17,500
8	50,000	40% (Approximate)	20,000
9	50,000	45% (Approximate)	22,500
10	50,000	50% (Approximate)	25,000

FAQs

How is surrender value calculated in LIC?

The surrender value of a LIC policy is calculated based on various factors including the premium paid, policy term, and the number of years the policy has been in force. Typically, LIC policies acquire a surrender value after 3 years of premium payments. The exact formula for calculating surrender value can vary between different LIC policies, but in general, it can be estimated to be around 30-35% of the total premiums paid, excluding the first-year premium.

What is 100 percent surrender value of LIC policy?

The 100 percent surrender value refers to the complete surrender of the policy, where you terminate the policy and receive the full amount that has accrued as the surrender value. This value can be estimated to be roughly 30-35% of the total premiums paid, excluding the first-year premium.

What is the surrender value of LIC after 10 years?

The surrender value of a LIC policy after 10 years can vary depending on the specific policy and the premiums paid. However, as a rough estimate, it could be around 50-70% of the total premiums paid, excluding the first-year premium.

Can I close my LIC policy after 5 years?

Yes, you can generally close your LIC policy after 5 years. Most LIC policies acquire a surrender value after 3 years, so you can surrender your policy after 5 years and receive the applicable surrender value.

How much money will I get if I surrender my LIC policy after 6 years?

The amount you will receive when surrendering your LIC policy after 6 years can vary based on the specific policy terms and premiums paid. As an estimate, it may be around 55-75% of the total premiums paid, excluding the first-year premium.

How much will I receive if I surrender my life insurance policy?

The amount you receive when surrendering a life insurance policy, including LIC policies, depends on several factors such as the policy type, premium amount paid, and the number of years the policy has been in force. As a rough estimate, you may receive 30-75% of the total premiums paid, depending on the policy and its terms.

Is surrender value higher than cash value?

No, surrender value is typically not higher than the cash value of a life insurance policy. Cash value represents the amount you can access during the policy’s lifetime, whereas surrender value is the amount you receive if you terminate the policy before maturity. Surrender value is often lower than the cash value.

Which is better paid up or surrender value?

Whether paid-up or surrender value is better depends on your financial goals and circumstances. A paid-up policy means you stop paying premiums but continue to receive reduced benefits. Surrendering the policy means terminating it and receiving the surrender value. The choice between the two depends on your insurance needs and whether you need the cash value immediately or can afford to keep the policy paid-up for reduced benefits.

What is surrender percentage fee?

A surrender percentage fee is not a common term in life insurance. The surrender value itself represents the percentage of premiums paid that you will receive upon surrendering the policy. There may be surrender charges or penalties deducted from this value, but it’s not typically referred to as a “surrender percentage fee.”

What are the disadvantages of surrendering LIC policy?

Disadvantages of surrendering an LIC policy may include:

1. Loss of insurance coverage.
2. Reduced payout compared to maturity benefits.
3. Surrender charges that reduce the surrender value.
4. Potential tax implications.
5. Forfeiture of future bonuses or dividends.

Can LIC policy be surrendered online?

Yes, LIC policies can often be surrendered online through the LIC website or customer portal. However, the specific process may vary, and it’s advisable to contact LIC’s customer service or visit their website for detailed instructions on how to surrender a policy online.

How can I check my LIC policy maturity value?

You can check your LIC policy maturity value by contacting LIC’s customer service, visiting the nearest LIC branch, or using LIC’s online portal. They will provide you with the current maturity value of your policy based on its terms and premium payments.

Can I close my LIC and get money back?

Yes, you can close your LIC policy and receive a surrender value, which is a portion of the premiums you’ve paid. This is not the same as getting your entire premium amount back, as there may be deductions for surrender charges.

Is it beneficial to surrender LIC policy after 10 years?

Whether it’s beneficial to surrender an LIC policy after 10 years depends on your individual circumstances and financial goals. Consider factors such as the surrender value, your insurance needs, and the potential loss of future bonuses or dividends before making a decision.

What happens if I stop paying LIC premium after 7 years?

If you stop paying LIC premiums after 7 years, your policy may lapse, and you could lose the insurance coverage and other benefits associated with the policy. However, LIC policies often have a grace period during which you can pay overdue premiums to keep the policy in force. It’s advisable to contact LIC for specific details regarding your policy.

How can I check my LIC policy surrender status online?

You can check your LIC policy surrender status online by logging into the LIC customer portal on their website. The portal typically provides information about the surrender value and the current status of your policy.

What is special surrender value?

Special surrender value is the surrender value of a policy that may be different from the regular surrender value. It is calculated based on specific factors such as the policy’s duration, premium payment history, and other conditions. Special surrender value is often lower than the regular surrender value.

How can I withdraw my matured LIC policy online?

You can typically withdraw your matured LIC policy online by contacting LIC through their customer portal or by visiting a LIC branch. The process may require submitting the necessary documents and details to initiate the withdrawal.

What is the cash value of a $10,000 life insurance policy?

The cash value of a $10,000 life insurance policy can vary depending on the type of policy, premium payments, and the number of years the policy has been in force. As a rough estimate, it may accumulate a cash value of a few thousand dollars after several years of premiums.

What is the cash value of a $25,000 life insurance policy?

The cash value of a $25,000 life insurance policy can vary widely based on policy type and other factors. After several years of premiums, it might accumulate a cash value in the range of $5,000 to $10,000, but this can vary significantly.

Is it good to surrender a life insurance policy?

Surrendering a life insurance policy can be a valid option in certain situations, such as when you no longer need the coverage, have better investment opportunities, or are facing financial difficulties. However, it’s essential to carefully consider the implications, including surrender charges, potential tax consequences, and loss of insurance protection, before making a decision.

Why is surrender value so low?

Surrender value is lower than the total premiums paid because it takes into account various factors, including administrative costs, mortality charges, and the insurer’s need to maintain a reserve fund. Additionally, surrender charges may be deducted to cover expenses associated with policy issuance and maintenance.

How much is cash surrender value?

The cash surrender value of a life insurance policy depends on the specific policy, premium payments, and the number of years the policy has been in force. It can vary widely but is typically lower than the total premiums paid.

How do I avoid surrender charges?

To avoid surrender charges, you can consider the following options:

1. Keep the policy in force until maturity.
2. Convert the policy to a paid-up policy if your policy allows it.
3. Explore options to use the policy’s cash value, such as taking a loan or making partial withdrawals, instead of surrendering it.

Do you get taxed on surrender value?

The taxation of surrender value depends on the tax laws in your country. In many cases, surrender value may be subject to taxation, especially if it exceeds the total premiums paid into the policy. Consult a tax professional or financial advisor to understand the tax implications in your specific situation.

What are the benefits of surrender?

The benefits of surrendering a life insurance policy include:

1. Access to cash value for immediate financial needs.
2. Freedom from premium payments.
3. Ability to use the surrendered funds for other investments or expenses.

However, surrendering a policy also has disadvantages, such as loss of insurance coverage and potential surrender charges.

How is surrender fee calculated?

Surrender fees are typically calculated as a percentage of the cash value or the policy’s surrender value. The specific fee and calculation method can vary between insurance companies and policies.

Are surrender charges waived?

Surrender charges may be waived or reduced after a certain number of years or during specific policy periods. Check your policy documents or contact your insurer to understand if surrender charges are waived in your case.

What is required to surrender LIC policy?

To surrender an LIC policy, you generally need to submit a written surrender request along with the policy documents to your nearest LIC branch. The specific requirements and documentation may vary, so it’s advisable to contact LIC for precise instructions.

Should I surrender my LIC Jeevan Anand policy?

The decision to surrender an LIC Jeevan Anand policy depends on your individual financial goals and needs. Consider factors like the surrender value, insurance coverage, and any potential alternatives before making a decision. Consulting a financial advisor can also be helpful.

How do I write a letter to surrender my LIC policy?

To write a letter to surrender your LIC policy, include your policy details, a request for surrender, and your contact information. You can typically find a surrender request form on the LIC website, or you can draft a formal letter. Be sure to sign and date the letter before submitting it to your nearest LIC branch.

How can I convert my LIC policy to a paid-up policy?

To convert your LIC policy to a paid-up policy, you usually need to inform LIC in writing of your intention to convert. The specific process may vary depending on your policy type and terms. Contact LIC or visit their website for instructions on converting your policy to a paid-up status.

Can I withdraw money from LIC policy before maturity?

Yes, you can often withdraw money from an LIC policy before maturity by surrendering the policy. However, this may result in a lower payout than if you wait until maturity. You can also explore options like taking a loan against the policy’s cash value or making partial withdrawals, depending on the policy’s terms.

What is the current asset value of LIC?

The current asset value of LIC (Life Insurance Corporation of India) can vary and is not readily available in real-time. LIC manages a diverse portfolio of assets, including stocks, bonds, and real estate. The value of these assets can fluctuate over time based on market conditions and investment performance.

What is the LIC money-back policy for 15 years?

LIC offers several money-back policies with various terms, including 15 years. These policies typically provide periodic payouts during the policy term, and the policyholder receives a portion of the sum assured at regular intervals. The specifics of the LIC money-back policy for 15 years can vary, so it’s best to refer to the specific policy brochure or contact LIC for detailed information.

How much money will I get if I surrender my LIC policy after 1 year?

Surrendering an LIC policy after only 1 year may result in a very low surrender value, and you may receive only a fraction of the total premiums paid, after deducting surrender charges. It’s advisable to contact LIC or refer to your policy documents for precise details based on your policy’s terms and conditions.