How to Calculate the Surrender Value of LIC

The Life Insurance Company (LIC) of India is headquartered in Mumbai, India's most populated city.

The Life Insurance Corporation (LIC) of India, which insures over 250 million customers, offers over 60 policy choices, each with its own profit and bonus structure. If a customer has paid into a plan for a minimum of three years and chooses to opt out early, he can drop his LIC policy and cash out part of his total amount invested to date. The cash-out amount for a plan is called the surrender value. Since each plan has its own surrender time line and value, a LIC calculator is useful in computing the refund.

Step 1

View the schedule page of your LIC policy. The schedule page is the first page of the policy.

Step 2

Visit the Insure Magic LIC Surrender Value Calculator website (see Resources).

Step 3

Enter the start date of the policy bond, which is listed on your schedule page, into the surrender value calculator (use DD-MM-YYYY format).

Step 4

Enter the policy holder's date of birth on the calculator (use DD-MM-YYYY format).

Step 5

Enter the LIC plan number from the schedule page of the policy bond.

Step 6

Specify the frequency of your payment (yearly, half yearly, quarterly or monthly) for the policy premium.

Step 7

Enter the term period listed on the policy.

Step 8

Enter the premium-paying term (the span of years during which payment is required) of the policy.

Step 9

Enter the sum (the amount paid upon your death) assured under the policy.

Step 10

Enter the amount of your payment, during each installment, for the premium. For example, enter the dollar amount you pay monthly, quarterly or yearly.

Step 11

State the amount of the annual rider premium under the policy listed on the schedule page.

Step 12

Enter the due date of the premium last paid (DD-MM-YYYY). The due date can be found on the payment notices sent by LIC.

Step 13

Click "Calculate" to receive the surrender value.


To check policy status online, go to the Registration page of the LIC India website (see Resources) to create an online user account. All new users must supply an email address and select a user name, password and pin number.

The LIC site will prompt for the entry of the policy number, premium and name of the insured person(s).

If the policy bond is not listed on the LIC site, check with the company to determine whether the policy was assigned back to them due to a loan taken against the value of the plan.


Insurance policies are designed to accrue value over a long period of time.

Surrendering a LIC policy before the third year of payment results in a complete loss. After three payment years are completed, surrender value begins to accumulate, but is proportionately much lower than the amount paid in.

Under some LIC plans, bonuses are part of the surrender value. Bonuses are extra payments distributed by a life insurance company, from its surplus profits, to qualified policy holders.

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