LIC New Endowment surrender value

When (and when not) to surrender New Endowment

Plan 714 follows LIC's standard endowment surrender framework. After the October-2024 IRDAI revisions, surrender is permitted after just one full year's premium (down from two/three earlier), and Special Surrender Value (SSV) is benchmarked against the prevailing G-Sec yield + 50 bps — a meaningful improvement over the older slab-based SSV factors. Practical year-by-year: years 1–2 you recover roughly 30–40% of premiums; year 5 you typically cross 60%; year 10 you are usually above cumulative premiums; year 15+ the surrender value comfortably exceeds total premiums paid but still leaves the FAB (a maturity-only payout) on the table. The vested simple reversionary bonuses are surrendered at a discount of 25–40% to face value, varying by year. The headline rule: surrender is rarely optimal; if you must exit, after year 10 hurts least.

Generic mechanics

Surrender mechanics for Jeevan Labh follow LIC's standard endowment formulas — the Surrender Value guide walks through the GSV factor table and SSV calculation with worked examples. You can also convert the policy to paid-up instead of surrendering, which keeps the cover (at a reduced sum assured) without further premiums.

Run your own number

Plug your premium, year of surrender and vested bonus into the surrender calculator to get an estimate for your specific policy year.