Think Twice Before Surrendering Your LIC Policy
Surrendering early almost always means a loss versus premiums paid, because acquisition costs are front-loaded and bonuses vest fully only over time. Before deciding, understand your three options:
| Option | What Happens | Best When |
|---|---|---|
| Surrender | Policy ends; you receive higher of GSV/SSV | Genuine cash emergency, very early stage |
| Paid-Up | Stop premiums; cover & maturity reduce proportionately but stay alive | Can't continue premiums but don't need cash now |
| Policy Loan | Borrow up to 90% of surrender value @~9.5%; policy continues fully | Temporary need; want to keep all benefits |
Full rules, factor tables and examples in our guide: LIC Surrender Value Rules Explained. Need loan figures? Try the Policy Loan Calculator.