Is it good to surrender LIC policy?
As mentioned above, when someone withdraws his LIC policy, he does not enjoy the maximum returns. Hence, at the time of surrender of the policy, the policy value is calculated. All additional bonuses, tax benefits received, and premium paid for rider cover is not included while calculating the surrender value.
How much money will I get if I surrender my LIC policy after 5 years?
Moreover, if you have paid your premiums for more than four years, but less than five years, then you will receive 90% of the total maturity sum assured as a special surrender value. A 100% special surrender value is given out if the policyholder has regularly paid the premiums for five years.
What is policy surrender value?
The surrender value is the actual sum of money a policyholder will receive if they try to access the cash value of a policy. Other names include the surrender cash value or, in the case of annuities, annuity surrender value.
Which is better paid up or surrender value?
Paid-up v/s Surrender\n\n Paid-up is better in the sense that the life cover continues even after premium payment has stopped. If you go out to buy another policy at an advanced age, the premium amount will be higher as compared to what you were paying in the earlier plan.