Insurance Policy Surrender Value & Paid-up Value Calculator

Published: February 2, 2013 at 4:09 pm

Last Updated on

This calculator allows you to determine:

1. Paid-up value

2. Guaranteed Surrender value

3. Special Surrender value

of any non-ULIP insurance policy. The numbers should be exact for LIC policies since it uses their surrender value factors. This can be used as a crude estimate for other insurers provided a lower average bonus rate is used.

The above numbers are calculated with (a) no bonus, (b) bonus rates for each year of policy (up to 20 years) if known or (c) with an average bonus rate.

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It tells if your surrender value is taxable or not.

It allows you to compare paid-up and surrender options. it has some useful notes on bonus rates and some info on when to do what (along the lines of the blog post). Relevant interesting links are also included.

Download the Insurance Policy Surrender Value and Paid-up Value Calculator

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Pattabiraman editor freefincalM. Pattabiraman(PhD) is the founder, managing editor and primary author of freefincal. He is an associate professor at the Indian Institute of Technology, Madras. since Aug 2006. Connect with him via Twitter or Linkedin Pattabiraman has co-authored two print-books, You can be rich too with goal-based investing (CNBC TV18) and Gamechanger and seven other free e-books on various topics of money management. He is a patron and co-founder of “Fee-only India” an organisation to promote unbiased, commission-free investment advice.
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  1. Pattu it’s great..I am also doing a similar post and would refer to your calculator..
    Man you saved me lot of hard work!

  2. pattu sir,if you make policy paid up,whether we will get paid up value plus bonus amount whatever acquired till now?or we will get only paidup value?

    1. Dear Dilip,
      All bonuses applicable up to date of making it paid-up will be paid along with paid-up value during date of maturity. Unfortunately if the paid-up date is far away from maturity date the money will simple be idle and not earn any interest

  3. Thank you sir! I have paid 5yrs premium and stopped paying premium. still 15yrs there for it’s better to take money and invest somewhere else.

    1. Thanks for commenting. I am not sure of how surrender values of calculated if premiums are no calculated for whole years (eg. 2.5). In such cases I would enter 2. Trouble is this kind of information is not available in the public domain. Why would it be? No company wants policy holders to surrender!

      1. Thanks for your quick response. The file is really useful. If I input quarterly premiums (simply by multiplying monthly premium with 3), the SV quoted by LIC is just 3k lower than the amount arrived as per your sheet.

  4. Hi,
    I have downloaded the calculator, but I am getting the correct SV what was told by the LIC employee. My SA is 500000, PPT is 10 years, its a whole life money back policy (Jeevan Rekha) which gives back 10% of SA every 5 years. I have paid 8 premiums. And premium is 31526. Please let me know, when will be my break even when I surrender this policy. Currect SV is 151000.

    1. 1. I am not sure about how SV is calculated in case of money-back policies. You must have got some amt after 5 yrs. Perhaps this should be deducted from the result seen in the excel file.
      2. When use the excel file did you use the correct bonus amounts?

      In your case, if I understand you write, your annual premium is 31256, policy term is 10 yr and you have paid 8 yrs.
      My advice: kindly do not surrender. Please pay the remaining premiums let the policy run to maturity.

      if you have bonus amounts and the SV obtained from LIC website, kindly send it to me. I will use it to check the calculator.

      1. I have taken Jeevan Rekha (Money back) plan during 2005 ( 10 years term) and my plan premium ends during 2015 march, after paying full premiums my agent told me that I will only get the money when I am 80 years.( Agent explained me endowment scheme and gave this whole life plan, I was misguided )
        As I am not married ( Age 42yrs) and my nominee is my mother (67 years) I need experts advise on How to get the sum assured amount now rather than waiting for life long.

  5. I have a Reliance money multiplier plan
    Premium is Rs 50236 yearly and term is 10 years. BSA is Rs 341774.
    Company person promised me that on surrendering the policy after paying 3 premiums and on completion of 4th year i will get
    GSV (30 %) + SSV (40 % of Paid up value on Maturity) + Paid up value for 3 years.

    Is it correct .

  6. I have Jeevan saral with monthly premium, your calculator sheet does not have monthly premium input option? please told how can I use your calculator for monthly premium option?

    1. Hi Animesh,

      convert monthly premium to annual premium to get an estimate of paid up and surrender values. Note that in most cases making a policy paid-up is the simplest and best option.

  7. Hello Sir,

    Thanks for the various templates shared! I have downloaded many of them, but this is the first one that I have used. I have a question – my situation is very similar to the illustration you have given here – 4.25 years completed. Now it’s not 5, but I have claimed the 80C deduction every fin year. However, I also see that my policy has been issued in Oct 2009, so it’s before 2003. So, finally if I surrender it, will the returns be taxable? Your template says no, but I am posting this comment to confirm it.

    Thanks in advance for your time and reply.

    1. Hi Kunal, Thank you. My understanding is that you should wait until 5 years are completed before surrendering. If you surrender before 5 years, the 80C deductions become invalid and you will need pay on those in the FY year of surrender.

  8. Hello Mr. Pattu,

    I am shiva and i have gone for jeevan anand policy.

    I am 23 years old as of now. Intially when i took the policy a year back, it seemed very lucrative but now it feels really difficult for me to pay the premiums

    I took this policy in the month of may 2013 and i have so far payed 59,268 in 2 installments of 29,634 each. I dont want to for surrender option because i know i would be paid peanuts for the total amount i will be paying.

    I wish to go for paid up option. I also understand that i will have to pay money for atleast 3 years to go for paid up option.

    So in 3 years i will be paying 1,77,804 ( 59268 * 3). Assuming my bonus rate to be 50, kindly let me know how much i will be getting after 21 years which is my policy term

    PS: I tried using your calculator but sorry i couldnt understand anything properly

    What do u suggest ?

    1. If make the policy paidup the amt you will receive after 21 years will only be a little higher than the surrender value since further bonuses will stop. If you take inflation into account, you will practically get nothing.
      If you can stomach this 59K loss now and stop premiums, you will not get the addition loss of 59K x 2. So my advice is to stop your losses now. You are only 23. Invest in equity mutual funds aggressively. You will easily make up the loss.

  9. i have a Jeevan Mitra Double Cover Policy started in 1999 (20yr term) my annual premium is 12893. If i surrender it now what will be the amount i can get, i have paid premium till 2014 and have to pay for 2015 yet


  10. Pattu sir I am one of those idiot who took Jeevan Anand in Feb 2005(blame it on the investment rush for tax saving ) for a sum assured for Rs 2Lakh with annual premium of Rs 10263. A very routine question for you – what do I need to do if I make it paid up ? Do I simply stop premium payment ? Till now I can see the vested bonus as 93200 on my LIC online site

    As I have paid for quite some time , will I eligible for any preferential treatment , say loyalty bonus etc if I go for surrender now ?

  11. Dear Dr. Pattu, Could you please help me to calculate the Special Surrender Value of Jeevan Saral After 5 years? I have invested in this product since 2011 (Premium 140000/year for 35 years). Now I want to exit after paying the 5th year premium . I hope this is the best I could do.

  12. SIR

  13. Sir,
    I have a jeevan Saral Policy of SA 1125000 , Term – 10 yrs , premium -54045 . I have paid 4 premiums till now. Can you tell me if i make the policy paid up how much would I receive at the end of the term.
    I have a jeevan AnandPolicy of SA 1000000 , Term – 23 yrs , premium -46175. I have paid 6 premiums till now. Can you tell me if i make the policy paid up how much would I receive at the end of the term.
    Sorry, I was not able to understand from your calculator, hence I aksed 🙂

  14. HI. I have total 21 policies; all with avg sum assured of about 2 lac. Premium payment started from year 2010 (age 23) (annual premium of all policies about 115000); first policy is for 27 years (till age 50), second for 28 years… on 21st policy for 47 years (age 70)….
    Agent had sold me this policy saying that life cover continues till age 99…
    I have paid premium for 5 years…what do you advice me???
    Using your excel, it seems I should make all policies as paid up.

  15. I have paid 14 premiums quarterly of amount 1727/- each of Jeevan anand policy, of which 2Lacs is the sum assured for a term of 30years.
    I’m thinking of surrendering the policy what”ll be the net amount I’ll get in hand after all the deductions.
    And will I be availing any bonuses or interest along with premium amount.

  16. I am having a LIC policy Jeevan Saral of 25 years tenure and paid 5 years of premium. Now I have to pay 6th year premium but found that my agent has cheated me and provided me wrong information about this policy. On surrendering this policy now I am getting around 75% of what I have invested with no interest. I have read about paid up, if I make my policy paid up (by not paying any more premiums) and then surrender it after 5 more years (i.e. policy term 10 years), will I get 100% of premium paid, will I also get loyalty bonus declared by LIC for 10 years or not

  17. I have paid 9 years premium for LIC jeevan anand and Jeevan Mitra, pls suggest what should I do? Should I Surrender or make it paid up. What is more beneficial?

  18. Pattu Sir,

    I had taken Jeevan Anand (comprising of 15 policies).Each policy SA is 1L.
    I have paid 5 years premium of 80k each coming to 4L till now.I asked LIC to share the paid up value and surrender value.The paid up is coming to 3.5L and the surrender is coming to 2.4L.
    Considering i still have 10 more years to go on this policy for maturity do you think it make more sense if I surrender and get that 2.4L and start putting and spreading that money into Equity + Debt fund or even PPF because the difference between paid up and surrender is just 1L and if I surrender my 2.4L may grow at compounded rate of 8%(PPF-worst case) is around 5L which is more than the paid up value in 10 years.. Please suggest as I am in a dilemma after reading your wonderful post on making the policy paid up.
    Your answer may even help me out on my another blunder I made on AVIVA policy.

  19. Hello Sir, I have got a endowment policy of premium paying term of 21 (10 lac Policy) and it has some accrued bonus
    (started this plan by 2007). Recently I notice the policy term of my policy says 78
    (which is so high I believe and I am not sure how this got selected).
    my question here is – To get the premium paid + bonus, should I opt for surrender or should make the policy as paid-up?
    Your reply/thoughts on this context is really appreciated.

    1. policy term of 78 years?!! You have already paid about 10 premiums. Surrender or paid up is a loss. At least in surrender, you will get some money immediately! So if you must get rid of it, go for that. Forget about premium+/- bonus etc. BUt BEFORE that get a term insurance cover and invest right!

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