# How to check the surrender value of a LIC policy?

Once a policyholder decides to terminate or surrender a policy, they receive only the surrender value from the policy provider. In this blog, we talk about everything you need to know about surrender value and the calculation of surrender value.

So, you want to calculate the surrender value of a LIC policy but don't know how? Here we cover everything that you need to know. From the definition of surrender value to how to calculate the surrender value of a LIC policy, we got you covered.

You may also like to read about 'Things to not miss while surrendering life insurance policy.'

### What do you mean by surrender value?

When an individual surrenders a policy before its maturity period, they receive a certain amount of money from the insurance provider. This amount is known as the surrender value.

In case of a LIC policy surrender before maturity, the policyholder receives a certain sum of money paid as a premium in the form of surrender value. But as per LIC, this amount is paid after deducting charges due to surrender before maturity.

### How To Check The Surrender Value Of LIC?

To check the surrender value of your LIC policy, you need the original policy document received after the purchase of the policy from the company. Now, carefully read the policy document and find your policy's terms and conditions section.

Whether you want to know the surrender value or the period after which you can surrender the respective policy, the details should be listed in the surrender subsection of the terms and conditions section.

### How To Calculate Surrender Value Of LIC Policy?

There are two types of surrender values: Special Surrender Value and Guaranteed Surrender Value. You can calculate the surrender value of the policy using simple formulas.

Guaranteed Surrender Value:

The guaranteed amount that a policyholder will receive upon the termination of the policy before its maturity, excluding bonus, is known as the guaranteed surrender value. The guaranteed surrender value is generally determined according to the surrender value factor.

To calculate the guaranteed surrender value, use the following formula:

Surrender value factor/ Percentage x initial amount paid x period of policy the money was invested for.

Special Surrender Value:

The special surrender value is slightly different from the guaranteed surrender value. It is generally calculated using the value of bonus, basic sum, and surrender value factor.

To calculate the special surrender value, use the following formula:

Basic sum x instalment paid + bonuses if any x percentage/surrender value

You can also calculate the LIC surrender value using online calculators. These surrender value calculators are found on numerous online websites.