LIC Jeevan Anand Surrender or Paid up

Jeevan Anand Surrender or Paid up, what to do? This is one of the common query I have received in last few months.

Lic jeevan anand plan is the most selling insurance policy for life insurance corporation of India from a long time.

After various changes in IRDA rules, LIC has relaunched old Jeevan ananad in the name of New Jeevan Anand policy. The key features of this new Jeevan Anand remains almost same, without providing much life cover and long term return.

Many people started realizing the facts about these LIC policies and now looking to come out of that. But got confused whether to surrender the policy or paid up. If you are searching for jeevan anand surrender value after 5 years or similar terms and found this page, then I will help you to decide whether to  surrender or paid up your jeevan anand plan.

Jeevan Anand Surrender or Paid up

To understand the situation and decide which one will be good we will consider few basic questions mostly asked.

Can I surrender lic jeevan anand policy before 3 years?

As per policy rule, one can’t surrender jeevan anand plan before 3 years of premium payment. That means if you surrender this plan after 2 years of premium payment then you will not get any money back.

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Can I surrender value of jeevan anand after 3 years?

In that case as per policy rule you will get some surrender value. The surrender value calculation of Jeevan anand plan as follows = 30% of paid premium after excluding 1st year premium. E.g. if your yearly premium is 20,000 and you have paid 3 premiums, t.e. 60,000 your surrender value will be 30% of ( 60,000 – 20,000 ) = 30% of 40,000 = 12,000 only.

Jeevan anand paid up before 3 years

This is not possible. To paid up jeevan anand policy, one have to continue premium paying for minimum 3 years.

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Lic jeevan anand paid up value after 3 years

Yes, you can paid up your jeevan anand plan instead of surrendering. Considering the above example, if you surrender jeevan anand plan after 3 years, then you may loose 60,000 – 12,000 = 48,000. But if you paid up your Jeevan anad plan then you may save this 48,000 amount. But you entire policy benefit will be ceased at that point and maturity value will be prorate basis as per premium paid.

I have paid 1 premium, should I surrender or paid up?

I think you have only one option left, that is discontinue the policy by not paying further premiums. As per rule you can’t paid up or surrender jeevan anand plan. So better to forget about the paid premium and bear the loss to save further loss.

I have paid 2 premium, should I pay 1 more premium and paid up the plan?

Again you can forget your premium paid and invest money in other investment tool. We will take an example here. E.g. your premium is 20,000 and we have seen that if you pay 1 more premium, your surrender value will be 12,000 (after paying total 60,000).

But if you stop paying premium now, your loss will be 40,000 (2 premiums) but after 3rd premium the loss will be 60,000 – 12,000 = 48,000. So surrender is not the option.

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Now if you paid up the policy after paying 3rd premium, then your 60,000 money will be with LIC for entire policy term and on maturity it will earn a very less bonus.

In other way if you bear the loss of 40,000 and invest further 20,000 of 3rd premium in mutual fund or any investment for a period of more than 15 years, the actual yield will be more than this.

So as per calculation it is better to accept loss and continue with other investment options, but you have to do the calculation properly as per investment options you are going to choose.

Finally, what to do : Jeevan Anand Surrender or Paid up

If you have paid more premiums e.g. more than 5 years or more than 8 years then you have to stop for a while. In a 15 years policy if you have paid 8 premiums and realized the mistake of investment, then it is better to paid up the policy rather than surrender.

If you are an aggressive investor or can take more risk then you can surrender jeevan anand plan and take out the money in invest in equity for better returns. But even though you surrender the plan, it will take around 1 year to get the surrender value back to your account.

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Don’t just buy any insurance plan as per your friend’s or agent’s recommendation. Check out the policy benefits and after purchase clause, mainly paid up and surrender value. Otherwise you might be trapped in future and feel like there is no way to come out.

And even after realizing if you don’t come out at proper time, then you may dig further lose. In a single line, stay away from any insurance with savings plan in future.

So, what is your take away from this “Jeevan Anand Surrender or Paid up” debate?

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  1. Actually Investing into LIC is waste of Money.
    It doesn’t allow you even to draw your invested amount.
    You cannot withdraw your vested capital.
    LIC s policy are too rigid and not good place to invest.
    Waste of Your capital.

    1. You are right, but again you should not blame them as there are people who are happy to get low return but guaranteed. If you are expecting more return then you should move on.

  2. Dear Santanu
    I have a Jeevan Aanand Policy with following:
    Sum Assured = 10,00,000/-
    Acceidental Benefit = 5,00,000/-
    Premium= 7962/- (quaterly)
    Date of Policy commencement (i.e, first premium) = 02/02/2013
    Total premiums paid = 14 (each quarter)
    Date of Maturity = Nov 2042

    Shall I suurender the policy or make it paid up? Please explain the pros and cons of each.

    Waiting for your reply

  3. Hi sir me Prince just choose jeevan Anand policy…
    And paid up to 8th premium sum of 1875 monthly my premium term is up to 25yrs….
    I want to surrender my policy but my agents refuses…..and my premium is deducted montly from my pay slip….i.e. ..i m a government employee and i am unable to do anything…….plz kindly help me………

  4. Hi Shantanu,
    firstly congratulations on an excellent and informative blog. Please advise me on my Jeevan anand policy as well. I started it on 28/07/2013, with annual premium of 51122 and I have paid 2 more premiums on time. this year I dont want to continue; but I would like your advice on whether to surrender or make it Paid up. I dont have any other insurance policies, nor do I intend to have one. but i do have a decent amount in mutual funds.

      1. Dear Santanu
        I have a Jeevan Aanand Policy with following:
        Normal death = 6,00,000/-
        Acceidental Benefit = 12,00,000/-
        Premium= 41132/- (Yearly)
        Total premiums paid = 4 (each Year)
        Policy Term = 15 Years
        Now if i surrender my policy than how much amount i shall get, Please explain.

  5. Dear Sir,
    I have LIC jeevan Anand Policy. DOC: march/2009, monthly premium: Rs. 1754 per month. Premium term: 40 yrs. I always think to surrender the policy but never reached to a firm decision. Please Guide. What should i do? Continue or surrender? Thanking you,

  6. Hi, I have Jeevan Saral policies, I have paid 4 years, every year it’s about 2.4 lakhs, 61000 Quarterly premium. I have paid about 10.5 lakhs so far and to surrender them I am getting only about 7 lakhs as 3 years rule applies. I have 3 instalments (1.83 lakhs) remained to complete 5 years. Can you please help me whether it will be a big difference surrendering policies after 5 years then doing it now? I was thinking if paying 1.83 lakhs doesn’t give me more money at the end of 5 years then there is no point of waiting. Thanks.

  7. Dear sir,

    my name is kumar. am working in gulf country i have jeevan anad policy 400,000 which start june 2013 till the date i paid 03 premiums 21,561 per yearly. i can continue jeevan anad policy or can move other policy. i need good policy for accidental,death benifits please can u suggest me

    and my mother policy will complete in 2019, which policy for good (if pension policy ) elgible. she was 47 years old

  8. Hi Shantanu ,
    I have taken LIC jeevan anand policy term for 21 years
    sum assured – 100000
    Yearly premium – 53000
    Premium paid 3 years – 159000
    Now I want to either surrender or paid up my policy .which one will benefit me.Please guide me

    1. Paid up is a very big calculation. I think better to surrender and then invest the money in Mutual Fund via SIP for long term. Rest you have to do your own calculation of return. 🙂

  9. I have following LIC Policies is it worth to continue all of them or need to surrender Please advice

    1, The Endowment Assurance Policy( T14) Policy Term 21, Commencement : 14 Feb-2006 Premium 2443 ( half Yearly)

    2, Jeevan Anand( T 149) Commencement 17 -June-2009 Policy Term 72 Premium 1863 ( quarterly)

    3, Market Plus 1(T 191) Commencement 29 -June-2010 Policy Term 20
    Premium 1250 ( quarterly)

    4,New Bhima Gold (T 179) Commencement 28 -June-2010 Policy Term 12
    Premium 843 ( quarterly)

    5,New Bhima Gold (T 179) Commencement 28 -June-2010 Policy Term 12
    Premium 559 ( quarterly)

    6,New Bhima Gold (T 179) Commencement 28 -June-2010 Policy Term 12
    Premium 741 ( quarterly)

    1. I don’t think you have to continue this many policies. make it very simple by purchasing a term plan and then invest rest of the money in savings scheme.

  10. Hi..sir kiran here..
    I have a jeevan anand policy 47000 per year, sum assured 7 lakh,term 18 years December 2016 three years complete,till now paid all premiums, I planned to surrender when complete three years I think it junk policy… Can pls give aprx surrender value… And give ur valuable suggestions

    Thank you

  11. Hi Santanu,
    I have LIC Jeevan Anand Plan 149.
    DOC: Dec 2010
    Plan term: 12 Years
    Yearly premium: 47,950/-
    Paid till now with no Gaps (5 Years)
    Vested Bonus Shows: 10k
    I don’t want to surrender, but planning for a Paid up. What do you suggest?
    Approximately it will be around 5,25,000 on Maturity if I continue to pay premium for next 7 years. What will be the maturity amount approximately if I put this in Paid up Status?
    Will I get the Bonus if made Paid up?
    I am planning to divert money towards Equity Plans. Kindly Suggest
    Thanks in Advance,

  12. i have a jeevan Anand plan no-815
    SUM ASSURED-1000000{BASIC}

    I HAVE PAID TOTAL OF 19 INSTALLMENTS TOTAL OF 125000 ,now i want to cancel this plan bcz of some reasons ,so what should be best option to get my money back ,should i go for surrender or paid up value after 3 yrs,and how to calculate paidup and surrender value after 3 years, pls repy soon,waiting.

  13. Dear Sir,

    If I miss any premium payment by 4 days, will my vested bonus get deducted or becomes zero?
    I delayed only one premium payment by 4 days.


  14. Hi ,

    Is there a provision to go on a premium holiday for 2 years while on the Jeevan Anand Policy?

    When should someone make the policy paid up and when should they surrender it ?

  15. Dear Santanu,
    I have 2 Jeevan Anand Policies. Details as given below. Age-26
    SA – 1100000/- Term 16 Years
    DOC – DEc 2013
    Quarterly Premium – 19489/-
    Premium paid till deCEMBER 2015

    2) SA-300000/- Term 16 Years
    DOC-december 2015\
    Yearly Premium – 21030..
    Premium paid til now -3 years… ie upto december 2015

    At the time of purchase i unware about the scheme… now because of high amount of premium a huge amount is blocked and cannot invest in other schemes such as PPF and ELSS. NOw planning to take term plan and invest in equity linked or PPF. What is the better option? Should i paid up or surrender present policies?

  16. Hi Shantanu,

    Can somebody pls see and suggest better?

    I bought Jeevan Anand (149) – sum assured 5 Lacs started in May 2009 and paid till Nov 2014. (Total Rs. 96,000 Premium Paid).

    I want to surrender it or transfer it to my Son who is 9 yrs.

    Is it possible ? What should be better ? After surrender I am getting Rs. 55,000 only loss of Rs. 43,000 around.

    Shall I paid up or what … but I want to transfer to my son?

    pls suggest better?

    1. I think you have to do the calculations from your end as you are going to loose some money whether you surrender or paid up. And also what is the alternative investment you have for Jeevan Anand?

  17. I have taken the LIC Jeevan Anand plan and pay R16, 500 annually as premium. I have paid premiums for 8 years till date (Started on 2007 and policy term is 20 years). But now I have come to know that LIC Jeevan Anand plan gives only 5% annual return. I want to surrender the policy. If I surrender the policy now, I don’t get anything in return. Rather than investing in LIC I want to invest R16, 500 in a tax saving mutual fund. Please help me.

  18. I have jeevan Anand policy of Rs 13L(13 policies, 1L per policy) for 33 years. I paid 3 premium of Rs 30400. I want to stop this policy.
    I am not getting what should I do? either surrender or Paid-Up?

  19. Hi Santanu

    need your favor, plz find my details
    Sum assured= 5 L
    Tenure= 20 yrs
    Premium : Yearly- 25464/-
    Paid: 6 Premiums , started in 2010.

    Plz help in surrender valuation..

  20. I have a Jeevan Annad Policy where I have paid premium for 4 years ( it started in Feb 2011) and I will make the next payment in Feb 2015 — that makes it five premiums. The acount is showing vested interest of Rs 114000. The premium is 25947 yearly. The premium paying term is 25 years . Life cover is 600000/ . What is the approximate amount of money i may expect if I surrender this policy after payment of the 5th year premium in Feb 2016? Please guide

  21. Hi santanu ,

    First need help : Can you please suggest short term investments ( 3 to 5y ears )
    Second : Need help in regards to Jeevan anand policy : [Bad investment ]
    I dont want to pay any more money i think its crap …..
    What are the options i have ?

    Details :

    Sum Assured :300000
    Premium 21249
    Date of commencement :05/05/2011
    date of last payment :05/01/2026 = 15 years

    How much would i get if surrender ? or is there another option ?

    1. As your investment horizon is more than 3 years, I think you should start SIP in Mutual Fund of various fund houses to get good return. Also put some money in bank FDs to minimize the risk.

  22. Hi Shantanu,

    I have a Jivan Anand Policy purchased in Dec 2015. I have already paid the 10 premiums till Dec 2014. The premium for the Policy is 32101 Rs/P.A. and Sum Assured is 800000 Rs. The vested bonus shown as of today is 331200 Rs. The policy term is 25 years.

    Kindly suggest if I surrender it today what surrender value should I get approx. Actually I am finding it difficult now to pay premiums also I am in a need for the money. Just wanted a rough idea whether surrender will incur a loss to me on premiums already paid


  23. Hi Santanu,

    I have 2 policy’s and total premium for both is – Rs 21,205/- I have paid premium for 5 years and next premium (6th premium) is due in Nov – 2015. I am thinking to surrender both the policies and get the amount to invest in another option. Can you please let me know what would be the surrender value and how much amount I will get?

    Also is it good idea to surrender immediately or after paying 6th premium I should surrender?

    Thanks in advance.

  24. Hi santanu,
    I wanted to ask that i have two policies , one given saral under plan 165 and one given anand under plan 149 both policy terms are for 25 years. I have paid premium of continuously for 7 years of about 40500 on each policy every year.
    I have paid about Rs 81000 * 7 = 5,67,000 till date . Please suggest what should be done regarding these policies . The term seems too long with little return . It was for investment purpose.

    1. Hi Surbhi,

      If you have other investment option with good return compared to Jeevan Anand, then you can come out of this policy at any time. But remember you have loose some money and also go through with some frustrated period till you get your money back.

  25. Hi Santanu,

    I am having 2 jeevan anand policies 1 for my wife and 1 for my self.
    I have paid 6 installments of around 40K and my wife paid 4 installments of same amount.

    We here want to ask whats the right time to surrender the policy so that we can recover what we have paid.


    1. Hi Puneet,

      I think you have to decide what is the right time. If you think you have better investment alternatives than Jeevan Anand, then you can definitely come out.

  26. Sir
    My premium amount is 12000/-.
    I paid 3 years.
    Now i need money
    How much will come if i cancel this polocy.jeevan anandh policy.

  27. Hi Santanu,

    I have LIC Jeevan Anand Plan 149.

    DOC: Jan 2010
    Plan term: 21 Years
    monthly premium: 1808/-
    Paid till now with no Gaps (5.5 Years)
    Vested Bonus Shows: 94000

    I want to surrender my policy I want know that am I getting the full amount of Vested Bonus along with 30% of the premiums paid (excluding 1st year) if I surrender now?


  28. Hello,

    I have taken policy for 1.5cr for 25 years. Till now paid, first two years. Should I pay the third and discontinue after that. Should wait for money after maturity (25 years from now).

    or not pay 3rd at all?


  29. Dear shantnu,
    I have taken lic jeevan anand 815 policy in 2014 and i have paid only 1 premium which is 107000 for 25lack sum for 25 years now i don’t want to continue this.
    So shall i paid for 3 years or i should stop this and bear all loss.
    Please give me a suggestion

    Thanks & regard

  30. Hi Santanu,

    I have 3 LIC Money Back Policies, 2 LIC Jeevan Anand Policies and 1 Endowment assurance policy with profit. Now i am planning to surrender few policies. So please can u suggest me which of these policies i can surrender without any loss.
    Details are :
    1. Money Back Policy – 3 lakhs sum assured
    DOC: Dec 2011
    Premium term: 20 years
    Yearly premium: Rs. 18,979
    Paid till now with no Gaps (4 Years)
    2. Money Back Policy – 3 lakhs sum assured
    DOC: Dec 2012
    Premium term: 20 years
    Yearly premium: Rs. 19,051
    Paid till now with no Gaps
    3. Money Back Policy – 2 lakhs sum assured
    DOC: Nov 2009
    Premium term: 20 years
    Yearly premium: Rs. 6386
    Paid till now with no Gaps
    4. Jeevan Anand Policy – 5 lakhs sum assured
    DOC: Nov 2009
    Premium term: 25 years
    Half Yearly premium: Rs. 10,349
    Paid till now with no Gaps
    6. Jeevan Anand Policy – 1 lakh sum assured
    DOC: July 2009
    Premium term: 15 years
    Half Yearly premium: Rs. 4,415
    Paid till now with no Gaps
    5. Endowment Assurance policy with profit- 1 lakh sum assured
    DOC: Dec 2008
    Premium term: 15 years
    Half Yearly premium: Rs. 3,452
    Paid till now with no Gaps

    Waiting for your reply, thanks in advance

  31. Sir,
    I have paid first two years of premium of Rs. 95000\- in jeevan komal policy. My recent due is for last two years. I want to discontinue . Kindly let me know how much money can I get if I surrender or what are the other options. I am waiting eagerly for your reply.
    In anticipation

  32. Hi Santanu,

    Hope you will help me in my problem.

    I have started Jeevan Anand in 2011.

    The policy Term is of 28 Years. SA = 15 L.

    I do pay 52372 per annum as premium, 26186 half yearly.

    Till now in four years i have invested 2,09,488/-. As per your advice I have checked in their website and found that Vested bonus is shown as 2,14,500/-.

    Now, what is vested bonus?

    I don’t have much idea about investment. What benefit I will get if I continue for 28 Years?
    What do you suggest? For me, 52000/- is a big amount actually.

    1. Hi John,

      Vested bonus is nothing but the interest amount that LIC is paying for your invested money. Its like the interest you earn from your FD or anyother investment. Now you can surrender the policy and get money back as per policy rules, as you have paid more than 3 year premium.
      If you are not able to pay further premium, then I think there is no option left for you as well.
      Besides that, in case you close that policy, what you will do with that amount?
      Means will you invest the money somewhere else for better return?
      You will also loose the life cover of 15 lakh. Do you have a term plan for life cover?

      I think you should consider all these points and come out of this policy, in case you have a better alternative plan or investment.

  33. Dear shantanu,

    There are some online lic maturity calculator which are showing high is that possible?
    I have invested 38k and paid policy for last 4 years. i have sum assured around 9 lakhs.
    Among that one is jeevan anand.
    premium-9409, sum assured-2lakhs, term-23, year -2011. and it shows u may get maturity around 503800???

    Do u have an idea, is that possible. Should i surrender such policy?

  34. Dear Santanu,

    I am having Jeevn Anand Policy and Paying annual premium of Rs 24,000 since 2009 without any delay.

    Now I don’t want to continue with LIC Policy and in case if I surrender the policy will get only Rs 36,000 against the premium paid of Rs. 144,000/-

    In case if I go for paidup option then I will get my at least Rs. 144,000/- minus small charge of paid up but after the completion of policy period.

    Now my question is that should I inform my agent(who is my relative) that I don’t want to continue with my policy and want to go for paid up option or should is stop paying premium.

    Thanks in advance……

    1. Hi Paresh,

      Most of the LIC agents are our relatives only. This is the biggest reason people continue the policy, fearing about the impact in the relationship.
      But, its individuals call to inform the agent or not. As per process, I think one can take the decision by own without waiting for any agents clarification.

  35. Hi Santanu,

    I have a Jeevan Anand Policy for sum assured 5 lacs, started on 28/07/2011. My LIC portal shows the vested bonus is now 71500. I pay premium quarterly (Rs. 4319), and with the next premium on 28/07/2015, it will complete 4 years. I’m having a little problem in paying premium on time due to some recent crisis. My question is if I surrender this policy now, how much loss would I face. I might have paid around Rs. 69000 till now ( 4319*4 quarter*4 years)

    Thanks in advance

  36. Hi Santanu,
    I am having a Jeevan Anand Plan.
    Started in 2011.
    Duration: 27 Years
    Annual Premium: 53000/-
    SA= 15 L

    What is the return that I will get?
    Should I continue or not. I have till now deposited 4 premium.

    Please provide guidance.

  37. Hi ,
    Policy – Jeevan Anand
    Date of commencement – 19/11/2009
    Half yearly premium – 10,571.00
    Sum Assured – 5 Lakh
    Terms – 25 years

    Please suggest to surrender the policy or to continue.
    Thank for your support.

  38. Hi Santanu,

    I have LIC Jeevan Anand Plan 149.

    DOC: Feb 2011
    Plan term: 21 Years
    Annual Premium: Rs.20,455/-
    Paid till now with no Gaps (4 Years)
    Vested Bonus as per LIC website: Rs. 76000/-

    Now I have stopped paying premiums and want to surrender for some better return investment product.

    Pls advice, whether to surrender now or pay one more premium( upto 5 year).

    Also, how much amount will I get if I surrender now?


  39. Hi Santanu,

    I have started Jeevan Anand in 2011.
    The policy Term is of 28 Years. SA = 15 L.
    I do pay 52372 per annum as premium, 26186 half yearly.
    Till now in four years i have invested 2,09,488/-. As per your advice I have checked in their website and found that Vested bonus is shown as 2,14,500/-.

    Now, what is vested bonus?
    I don’t have much idea about investment. What benefit I will get if I continue for 28 Years?
    What do you suggest? If I stop, how much I will get or should I continue or not. Lot of confusions I am having. Please help. For me, 52000/- is a big amount actually.

  40. Hi Santanu,

    This paid up concept which I explained is wonderful. I pay a quarterly premium of Rs 6356 and the DOC (starting date) of my Jeevan Anand plan is 10 April 2009 and sum assured is Rs 5 Lakh. I have regularly paid my premiums. Term for my policy is 21 years. I want to invest 14K to 15K in MFs and remaining 10K approx for a Term plan of 1crore or above coz I am just 27. Please guide whether I should surrender or paid up (I am fed up though 🙂 ) with this policy? Also guide, if u r aware with procedure to do so ?

    Regards and best wishes,

    1. Hi Mr. Singh,

      I think you can come out in any form, as you have realized the mistake of continuing this policy for investment purpose.
      Regarding procedure, I think you have to contact your nearest LIC of India office to proceed further. 🙂

  41. Hi Santanu,

    I have LIC Jeevan Anand Plan 149.

    DOC: May 2007
    Plan term: 18 Years
    Monthly premium: Rs.2,965/- (through salary)
    Paid till now with no Gaps (8 Years)
    Vested Bonus as per LIC website: Rs.1,48,500/-

    Pls advice, whether to surrender or paid up?

    Will I be eligible for the Bonus in either case?



    1. Hi Samir,

      Do you need this money to fulfill any short term goal? Or do you want to invest in some better return investment product? Did you buy enough term insurance?
      I think you have to decide whether the money you have invested in Jeevan Anand can be take out and put in another one. Or you have enough money to start another good investment. As you have completed almost 50% of tenure, in case you surrender or paid up you have to face some loss.
      So, think accordingly and take action. 🙂

      1. Hi Santanu,

        Let me tell you I do not have any immediate short term need. I am only thinking in terms of very less ROI in those policies. Note that I have a term insurance of Rs. 30 lacs again in LIC (Amulya Jeevan). I do also have some money for fresh investment. I have only 9 yrs. left in my service life.

        In light of above, pls suggest what to do?



        1. Hi Samir,

          I have no idea how did you plan for your retirement corpus of do you have any alternative income source to fund retirement.
          If I assume, you have not started your retirement planning, then 9 years time is not enough. But still one can take some strong actions.
          Did you invest in equity market earlier? As you said you don’t have any short term expenditure plan, I think this is the best time you jump into equity market, may be via Mutual fund way. In 9 years you will get some good return on your investment.

  42. Dear santanu
    I am now pretty much sure after doing calculation considering inflation rate till 25 yrs, that investing money in endowment insurance is waste. I am also jeevan anand holder from last three years after regular payments of 50000 per year, but now decided to paid up from it. If i surrender i will get only ,~37000 and loosing 100000. I am glad to know you are making peoples aware with these things. Please enlight more regarding this vasted bonus term. And if someone has took benifit if 80c and surrendered any policy after few years what will be the consequences. Thnx.

    1. Hi Mukesh,

      I think if you have done your calculation, then you can easily come out of this policy and put your money in other investment products where you can get a good return.

  43. Hello Santanu,

    Thanks for explaining the surrender value concept in such detail. I have a question regarding my policy. I have a policy of Rs. 1,00,000 (1 Lakh) on 15 year annual premium term and I have paid 11 premiums till now. I have accrued around Rs. 49000 as bonus under this policy. I wanted to ask if I surrender the policy now, what will be my approx surrender value:
    1. Will it be just 30% of my total premiums paid minus the first premium
    2. Will I get more surrender value based on the no. of premiums and the bonus accrued (i.e. will I get more than just 30% of the premium paid).

    Thanks in advance.

    1. Hi Satish,

      I believe the premium amount is not that much and you have paid more than 70% premium amount.Better to complete the policy.

      1. Hello Santanu,

        Thanks for your reply. I am currently in US and for tax filing purposes I require the approx cash surrender value for the policy. I need to declare it here while filing taxes. So it would be helpful if you can let me know whether I would get only 30% of the premiums paid or it would be more than 30% and depending on the bonus accrued and surrender value factor (since I have paid premiums for more than 3 years).


        1. Hi Satish,

          That’s why I asked you to contact LIC officials to get accurate information. I can’t comment on that as per assumption as you are looking for the exact amount. 🙂

  44. I have paid 3098 monthly premium – 39 Installments
    Policy Term – 25 Years (300 Installments)
    Vested Bonus as per LIC website – 1,30,130/-

    What Will be Surrender Value?

  45. I have LIC Money Back Policy which I started paying in Aug 2008. I paid it for 2 years then I could not continue the same. Is there anyway I could surrender this policy?

    1. I think your policy got lapsed, as you have discontinued your policy. Before completing 3 year, one can’t surrender. Check with your nearest LIC of India branch to get more information.

  46. I have a Jeevan Anand policy DOC in 2006 paid till Dec 2014 . I don’t want to pay any more premium and please let me know which option I should go ? Should I go for paid up or surrender . My yearly premium is INR 55,404/- for 10 lakh on maturity . If I surrender how much I will loose and also let me know the best option for me.

    1. Hi Sudha, I think you can check your LIC online account and find out how much bonus accumulated. regarding surrender value, contact nearest LIC branch. Seems like you have paid 50% of the premium, I think you can surrender the policy.

  47. Dear Sir,

    I had taken a Jeevan Anand Policy (Plan No. 149) with SA 10 Lakhs in the year of March 2013. I am paying premium of Rs. 15,406 on quarterly basis. I have paid 9 premiums as of now and I realized that I am wasting money on this Policy. I also have a personal loan in my account.
    Can you suggest me further either Surrender the policy after paying 12 premiums or paid up.

    If I surrender the policy after paying 12 premium, how much can I get?
    Vested bonus will be Rs. 88,000 as on May 8, 2015.


    1. I think for the surrender value you should contact LIC officials. And based on your plan only you have to decide whether you want to get your money back now and invest somewhere else or you wanted to paid up the policy.

  48. Hi
    i would like to know about some information regarding lic premium
    i have been paying lic premium ( jeevan anand ) since 4 years , approximately Iam paying 35,000 inr yearly , now i wanted to stop paying them .if i stop paying them is it possible to get my money back ??? and if possible what is the process to do ? please let me know sir
    hopefully you will get back to me soon
    thank you

    1. Hi Sridhar,

      You can surrender the policy, as you have completed 3 year. Check out the surrender clause as per your policy document and talk to your lic agent or visit lic office.
      It is possible to get your money back, but not 100%.
      Hope this is useful. 🙂

  49. Hi Santanu,
    I have a jeevan anand policy with amaturity value of 1000000 for tenure of 20 years.
    I started this in 2009 and paid 24 quarterly payments of 12931 each for 6 years .
    I have taken a loan of 75000 in 2012 on this policy which i have not repaid.Any idea how much will be the paid up value for this and what is the procedure to make it as paid up?Thaniks in advance.

    1. Hi Narsi,

      I think you can visit your nearest LIC office with all related documents. They can help you to make this policy paid up.

  50. sir
    i have a jeevan anand policy149 in which i deposit 11400 in six month
    as that process i have deposit 3 premiums in 1.5 years
    can i surrender this

  51. Hi Santanu,
    I have LIC Jeevan Anand Plan 149.

    DOC: May 2006
    Plan term: 15 Years
    Half Yearly premium: 11,352/-
    Paid till now with no Gaps (9 Years)
    Vested Bonus Shows: 1 Lac

    I don’t want to surrender, but planning for a Paid up. What do you suggest?
    Approximately it will be around 5,40,000 on Maturity if I continue to pay premium for next 6 years. What will be the maturity amount approximately if I put this in Paid up Status?
    Will I get the Bonus if made Paid up?

    I am planning to divert money towards Equity Plans. Kindly Suggest

    Thanks in Advance,

    1. Hi Kiran,

      I think you can check for bonus details via LIC online website. As you have completed 9 years and 6 more year to pay, I think you can continue your investment if you are happy with the return.

      But if you think for Equity investment, then you have to do a calculation how it will benefit you. In case of Paid up policy you can put that money for Equity. But If you surrender this plan, it will take more time to get the eligible money and then invest that lump-sum amount in stock market. I hope you are aware about the volatility of Share-market and accordingly will be able to take risks.

      If it would have been in the initial years of policy then surrender would be the best option, but now you should check all possible cases and then decide which way you can get more out of your money. 🙂

      1. Thanks Santanu, decided to continue this for next 6 years. Since bonus on site shows as 1.2 lacs, considering another 6 years and FAB additions I am hopeful returns would reach close to 5.5 to 6 Lacs. Surrendering is not an option at this point for sure 😉

        1. That’s great Kiran, that you have reached a decision. There will always some better alternatives, but I believe individual have to decide whether they are ready to digest those suggestions. Better to do your own calculation, understand the product and take decision as per your need, like the way you have done. 🙂

          But one more thing I just want to add here, never buy a insurance to save tax. There are various products in market to save tax and get good return. If you are comfortable with Mutual Fund then try for ELSS. Thanks again for reading and finding this article useful.

          Share your feedback or suggestion if any about my efforts and if you find it useful share with your friends as well.

  52. Hi,

    DOC = dec 2010 , premium = 50k , SA = 10,10,000 , premium term = 21 yrs
    What u suggest ? surrender or paid up ?


    1. Hi Manish,

      Seems like you have already paid 2.5 lakh for this plan. Now as I have mentioned if you surrender you may loose some money from this amount and if you paid up then your entire amount will be locked for rest of the policy tenure. In case you surrender also, you will get your money back may be after 1 year.

      I think its better to surrender and invest the money in mutual fund for long term more than 15 years. But I would like to say that understand the difference between surrender and paid up and then only take a call as per your acceptability.

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