How to Surrender LIC Policy Online Before Maturity – Guide to LIC Surrender Value Calculator


4 min read

Updated on Oct 26, 2022

A Complete Guide on How to Surrender LIC Policy Online Before the Maturity and Use of LIC Surrender Value Calculator

Visual Stories

Wondering how to surrender LIC policy online? The procedure is easier than it looks initially. There are sometimes many reasons behind surrendering an LIC policy and if that is the case for you, then here is some help at hand.

How to Surrender LIC Policy Online Before the Maturity?

LIC (Life Insurance Corporation) of India is one of the most trusted investment avenues for Indian citizens. The company offers various kinds of insurance and investment plans for its customers. Why do then people search for how to cancel LIC policy or how to surrender LIC policy?

  • It sometimes happens that people hurry through their policy or investment decisions and do not check the finer points carefully.
  • Sometimes they end up choosing policies which are not suitable for them or they wish to switch to investing in another policy which gives them higher benefits in turn.

Is it then possible to cancel or surrender your LIC policy before the date of maturity or conclusion of the tenure? The answer is naturally Yes.

PayBima's Khushi Ka Tohfa

Can I Surrender LIC Policy Online? Things To Know While Surrendering your LIC Policy

  • Cancelling your policy before the maturity date is called surrendering your policy.
  • You will get the surrender value upon closing your policy.
  • You can use an LIC surrender value calculator to find this amount. It will be calculated if the premium is paid for three years in succession.
  • Closing your policy before three years will lead to zero surrender value.
  • No financial expert will ever tell you to surrender the policy since it will not give you any benefits.

Also Read: LIC vs. Private Insurance Companies in India

Calculation of Surrender Value Using LIC Surrender Value Calculator

The formula used is the following – 

Surrender Value = {The Basic Sum Assured x (The Number of Premiums Paid/The Total Number of Premiums Payable) + The Total Bonus received} x-Factor of Surrender Value

Things about Surrender Value

  • The surrender value will be decided when you purchase the insurance plan.
  • Guaranteed Surrender Value is where you can surrender after paying premiums for three years. Your surrender value will be worked out at 30% of the premiums paid (excluding those paid in the first year and those paid for accidental benefits). This value will go up if you cancel the policy later on.
  • Special Surrender Value is another term that you should know. Suppose you stop paying your LIC premium after a certain period of time. Your policy will be active although the sum assured will come down. This is called the paid-up value. This is the actual sum assured (number of premiums paid/number of premiums payable).
  • Once the policy is closed before maturing, you will get the surrender value that will be higher than the guaranteed and special surrender value.
  • For paid-up value, the lump sum will not be given instantly to you. However, the LIC policy surrender processing time is faster and you will get the surrender value eventually.
  • The total paid-up value is given to customers although no compensation is given if you are getting the surrender value instead.

Health Insurance Policy

Can I Surrender or Close LIC Policy Before Maturity Online? 

Here are some things to know if you were wondering how to close LIC policy online:

  • You can surrender your policy in the second purchase year in case of single-premium plans.
  • The surrender tenure is two years if the policy is lower than 10 years for Limited Period or Regular Premium LIC policies. For more than 10 years, it will be three years.
  • You can submit back your LIC policy after making premium payments for three years with some documents. They include the following:
  1. Original bonds of the policy.
  2. Surrender Value Form or Form Number 5074.
  3. Surrender Value Payment Request.
  4. Cancelled Cheque.
  5. Details of Bank Account.
  6. NEFT Form.
  7. Original Identity Proof.
  8. Official Letter stating the reasons for policy surrender.

Here is the actual procedure that you have to follow: 

  • You should go to your nearest LIC branch with the surrender discharge voucher or Form 5074 as mentioned.
  • Fill up this form and sign it.
  • Submit all documents for the procedure to begin.
  • Once the request gets approval, the surrender value will be paid to your bank account.
  • You can courier your voucher and documents to the LIC Head Office as well.
  • The address is Yogakshema Building, Jeevan Bima Marg, P.O. Box No- 19953, Mumbai-400021.
  • In this case, you need not visit the LIC branch.


Once you surrender your LIC policy, the insurance coverage will no longer exist and you will get the surrender value credited to your account. Also, the same policy cannot be restarted or revived. All the benefits will also cease to exist. The surrender value you get is considerably lower than the premiums paid by you. Hence, surrender your policy after thinking things through and only after taking proper financial advice.

Found this post informational? Browse PayBima Blogs to read interesting posts related to Health Insurance, Car Insurance, Bike Insurance, Term Life Insurance and Investment section. You can visit PayBima to Buy Insurance Online.

FAQs on How to Surrender LIC Policy Online Before Maturity

Can LIC policy be surrendered online?

LIC policy can be surrendered online from the 3rd year of the policy onwards. However, the minimum duration of the policy should be 3 years and in case of longer tenures it can be 10 years and beyond.

What happens if I surrender my LIC policy before maturity date?

If a policyholder surrenders his/her LIC policy before maturity date, the life cover immediately comes to a halt and the insured won't be able to revive it in the future.

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

A LIC policy can be surrendered after being in force for 3 years. Here, the surrender value received is equal to 30% of the total premiums paid excluding the paid premiums of the first year.

How can I know my LIC policy surrender value online?

The surrender value of LIC policy can be calculated using the below formula:
[Basic sum assured (Number of premiums paid/Total number of premiums payable) + Total bonus received] x Surrender Value Factor.

Mar 10, 2022
Author Bio
Author Image

PayBima Team
PayBima is an Indian insurance aggregator on a mission to make insurance simple for people. PayBima is the Digital arm of the already established and trusted Mahindra Insurance Brokers Ltd., a reputed name in the insurance broking industry with 17 years of experience. PayBima promises you the easy-to-access online platform to buy insurance policies, and also extend their unrelented assistance with all your policy related queries and services.

Related Blogs

Would love to hear from you

Share your candid feedback. Your email address won’t be published, we promise!

All fields are required

Find your suitable insurance plan

Speak to our advisor

Enter Value

Popular Posts

Trending Articles

Corporate Office : Mahindra Insurance Brokers Ltd ( A Mahindra Group Company ) Sadhana House, Ground Floor, 570 P. B. Marg, Behind Mahindra Towers, Worli, Mumbai 400018.

Licenced by IRDAI License No. 261; License Validity : 17-05-2025; Category : Composite Broker; CIN : U65990MH1987PLCO42609 Member of Insurance Brokers Association of India (IBAI).

Insurance is the subject matter of solicitation.

For a seamless experience, use the latest version of Chrome/Firefox/Internet Explorer.

Copyright © 2022 Mahindra Insurance Brokers. All Right Reserved.

Get A Call Back
Get A Call Back