What do I get if I surrender my policy early?
Surrendering means ending the policy before it matures and taking whatever value has built up. It is your right, but it is rarely a good deal early on, and the reason is structural rather than unfair.
A large part of your first years' premiums goes towards the cost of providing you life cover and the cost of setting up the policy. What is left over is what accumulates. So in the early years there is simply not much accumulated value to give back, and the guaranteed surrender value is expressed as a percentage of the premiums you have paid — a percentage that starts low and rises the longer you hold the policy.
Before surrendering, it is worth checking two alternatives: making the policy paid-up instead, which keeps some cover alive at no further cost, or taking a policy loan against it if the need is temporary.
What LIC's policy documents say, plan by plan
Quoted from each plan's official brochure. The wording is LIC's, not ours — open the source document to read it in full context.
LIC's Saral Jeevan Bima (Plan 859)Show
Surrender value
Surrender value is not applicable under this Plan.
Does this affect a policy you hold?
Send us the plan name or policy number and we will tell you exactly where you stand — including for policies bought through another agent.
Ask about my policy