Surrender value of a traditional life policy. The guaranteed factor is thirty percent in the early years and rises slowly, so surrendering a policy a few years in returns a fraction of what was paid.
Also called: policy surrender value, lic surrender calculator.
₹3,04,000 against ₹5,00,000 of premiums paid, a loss of ₹1,96,000 or 39.2%. The guaranteed factor at year 5 is 50%. Continuing to maturity or making it paid-up are the alternatives. Making the policy paid-up stops premiums and keeps a reduced sum assured, which avoids crystallising the surrender loss.
An estimate, not an offer or a guarantee. Projected returns assume the rate you entered holds for the whole term, which no market does.
This is what the calculation gives for the numbers you entered. It is an estimate, not advice, and it knows nothing about your situation beyond those numbers. Rules for India change on a published schedule; the effective date is shown on every rule-based tool.
The guaranteed surrender value is a scheduled percentage of premiums paid, starting at thirty percent after two years and climbing towards seventy or more in the later years, plus a share of accrued bonuses. Surrendering early therefore realises a large loss. The alternative worth knowing is making the policy paid-up: stopping premiums while keeping a reduced sum assured, which avoids crystallising the surrender loss and keeps some cover. Whether to continue depends on what the remaining premiums would earn elsewhere against what the policy returns.
the guaranteed factor is low in the early years, which is why surrendering early loses most of what was paidEach of these is asserted on every build. If a change to the engine ever moved one of these answers, the build would fail before the page could print it.
Surrender value₹3,04,000
5 lakh paid; 10L x 5/20
Open this exampleSurrender value₹0
boundary: no surrender value accrues before two years
Open this exampleFormula version 1.0.0 · definition 1.0.0 · India · Report a problem with this calculator