Estimate the Surrender Value in your life insurance policy

What is a Surrender Value Calculator and How Does It Work?

A Surrender Value Calculator helps you estimate the amount you will receive if you decide to surrender your life insurance policy before maturity. It works by factoring in key policy details like:

• Sum assured
• Total premiums paid
• Policy term
• Bonus (if any)
• The surrender value factor (as defined by the insurer)

This calculator gives you an estimate of the cash value you'll get from your policy today — which is especially helpful when comparing surrender vs. loan options. You can check your surrender value with our surrender value calculator.

How to use our Surrender Value Calculator?

By using our Surrender Value Calculator and carefully considering the risks and benefits, you can make a more informed decision about whether a loan against insurance policy is the right financing option for you.

1. Select your policy from the list of the policies. Can't find your policy? No problem, just reach out to us and we will help you.
2. Enter your policy details - Sum Assured, Premium, Term, Frequency and Start Date.
3. View the estimated surrender value and download the report.
4. Review your customized report; surrender may not be the smartest financial decision for you.

When does my policy start building surrender value?

Most traditional policies (like endowment or money-back) start building surrender value after 2–3 years of full premium payments.

In the case of ULIPs (Unit Linked Insurance Plans), they start accumulating a fund value right from the beginning, but they come with a 5-year lock-in period. This means even though your money is invested and growing in market-linked funds, you cannot withdraw the money until your lock-in period is over.

How to Use the SBI Surrender Value Calculator?

For using our SBI Life surrender value calculator on our platform you need to:

• Choose your SBI Life plan from the list of dropdown
• Enter your policy details
• Instantly view the estimated surrender value and download the report

If your SBI Life policy is eligible for a loan, our team will also guide you through the next steps.

How to Use the LIC Surrender Value Calculator?

For using our LIC surrender value calculator on our platform you need to:

• Choose your LIC plan from the list of dropdown
• Enter your policy details
• Instantly view the estimated surrender value and download the report

If your LIC policy is eligible for a loan, our team will also guide you through the next steps.

Is this calculator only for LIC and SBI Life policies?

Currently, the tool is optimized for LIC and SBI Life surrender value estimates. We're actively working on adding support for other major insurers like Max Life surrender value calculator, HDFC Life surrender value calculator, ICICI Prudential surrender value calculator, and Tata AIA surrender value calculator, and will be up soon.

If your policy isn't listed yet, don't worry — just reach out to us and we'll help you calculate the surrender value manually.

Can I get the surrender value instantly using this calculator?

Yes, our online surrender value calculator gives you an instant estimate based on the inputs you provide including policy type, premiums, and term. It helps you make quick comparisons between surrendering your policy and taking a loan against it.

Is the surrender value the same as the fund value in ULIPs?

Not exactly. In ULIPs, the fund value is the current market value of your investment. However, when you surrender the policy, charges or deductions may apply, especially if the policy is surrendered early. The surrender value is what you receive after these deductions.

Will surrendering my policy affect my credit score?

No, surrendering your policy does not directly impact your credit score. However, if you've taken a loan against the policy and fail to repay, it may be reported by the lender, which can impact your credit profile.

Can I withdraw money from my policy without surrendering it?

In some traditional LIC and SBI Life policies, partial withdrawal is not allowed. But in ULIPs, partial withdrawals are usually allowed after 5 years, subject to minimum balance requirements.

However, a loan against your policy is often a better way to access funds without losing your life cover.

Which is better — surrendering or taking a loan against my LIC policy?

How is Surrender Value Calculated?

Surrender Value = [ { ( Number of Premiums Paid / Number of Premiums Payable ) x Sum Assured } + Accrued Bonus ] x Surrender Value Factor

Please note, the Surrender Value Factor (SVF) varies across insurance companies and policies.

What is a loan against life insurance policy (LAIP)?

A loan against life insurance policy (LAIP) is a secured loan where you pledge your policy as security to borrow money. The lender will determine the maximum loan amount you can qualify for based on a loan to value (LTV) ratio. This usually ranges from 50 to 90% depending on the policy. This ratio represents the percentage of your policy's surrender value that the lender is willing to lend against. You are then issued a credit limit which functions like a bank overdraft facility, where you are charged interest only on the amount you withdraw from this credit limit.

How to get a loan against your life insurance policy?

With Mera Kal, you can get loan against life insurance policy in 5 simple steps:

1. Upload your policy document and we will get back to you if your policy is eligible for a loan.
2. Complete digital KYC process and bank verification through penny-drop.here.
3. Choose between a term loan or overdraft.
4. Pledge your policy to the lender.
5. Sign loan offer and receive the loan amount

How interest is calculated on overdraft against insurance policy?

Overdraft against life insurance policy works like a bank overdraft limit, where you are only charged interest on the amount you withdraw.

Example: You have a limit of ₹ 1 Lakh and the interest rate for the year is 10%. But if you used only ₹ 50,000 then the interest that you would have to pay would be ₹ 5,000 for the year.

What is the difference between an Overdraft and a Term Loan?