LIC Single Premium Endowment surrender value

When (and when not) to surrender Single Premium Endowment

Single-premium plans use a different surrender framework from annual-pay endowments. GSV is computed as a percentage of the single premium paid, ranging from roughly 75% in year 1 to 90% by year 5 onwards (excluding the first-year mortality charge component). SSV is plan-specific and may exceed GSV in mid-term years. The vested simple reversionary bonuses are surrendered at the standard 25–40% discount. Practical year-by-year: year 1 you recover roughly 75% of single premium; year 5 around 90% plus discounted bonuses; year 10 typically 100%+ on the combined value; year 15+ the surrender value comfortably exceeds the single premium but leaves FAB on the table. Loan against policy is available from month 3 and is almost always preferable to surrender in the first 5 years.

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.