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LIC Policy Surrender Value & Jeevan Shanti Calculator

Calculate Guaranteed Surrender Value (GSV), Special Surrender Value (SSV), and annuity payout for LIC Jeevan Shanti.

₹
₹
years
years
₹

Shown on your annual statement.

%

Insurer-specific and not published; 50–70% is typical mid-term.

Guaranteed surrender value
₹95,160
GSV factor 50% of premiums
Special surrender value
₹1,76,400
60% of paid-up + bonus
Amount payable
₹1,76,400
The higher of the two (SSV)
Gain on surrender
₹26,400
You paid ₹1,50,000
ComponentAmount
Total premiums paid₹1,50,000
GSV on premiums (50%)₹75,000
GSV on accrued bonus₹20,160
Paid-up value₹1,50,000
Special surrender value₹1,76,400
Payable (SSV)₹1,76,400

How this is calculated

The insurer pays the higher of the guaranteed and special surrender values.

GSV is a fixed percentage of premiums paid, rising with the number of completed years — 50% at 6 years here.

Paid-up value = sum assured × (premiums paid ÷ premiums payable) = ₹1,50,000.

Surrendering early usually loses money. Making the policy paid-up instead — stopping premiums but keeping reduced cover to maturity — is often the better option, and this calculator shows the paid-up value so you can compare.

LIC Policy Surrender Value & Jeevan Shanti Calculator: how it works

Surrendering a policy early usually means a loss. Making it paid-up instead is frequently the better option, and the comparison is worth doing before you decide.

Two ways of valuing a surrender

An insurer pays the higher of two figures. The Guaranteed Surrender Value is a fixed percentage of the premiums you have paid. The Special Surrender Value is derived from the paid-up value plus accrued bonuses, multiplied by an insurer-determined factor.

GSV as a share of premiums paid
Years paidGSV factor
Under 2Nil — no surrender value acquired
230%
335%
4 to 750%
1065%
1580%
2090%

Worked example

Worked example · ₹5 lakh sum assured, ₹25,000 premium, 6 years paid

Given

  • Annual premium: ₹25,000
  • Years paid: 6
  • Policy term: 20 years
  • Accrued bonus: ₹1,44,000

Working

  1. 1Total premiums = 25,000 × 6 = ₹1,50,000
  2. 2GSV factor at 6 years = 50%
  3. 3GSV on premiums = ₹75,000
  4. 4Plus a small factor on the bonus
  5. 5Paid-up value = 5,00,000 × 6 ÷ 20 = ₹1,50,000

You paid ₹1,50,000 and receive well under it — a substantial loss

The paid-up alternative

Paid-up value = Sum assured × (premiums paid ÷ premiums payable)

Why early surrender is so costly

The first year’s premium on a traditional policy largely goes to commission and expenses. Surrender values are structured to reflect that, which is why nothing at all is payable before two years and only 30 percent at two years.

Based on

  • IRDAI surrender value regulations

Frequently asked questions

The insurer pays the higher of the Guaranteed Surrender Value, a fixed percentage of premiums paid, and the Special Surrender Value, derived from the paid-up value plus accrued bonuses.

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