1. What Is GSV (Guaranteed Surrender Value)?

The Guaranteed Surrender Value (GSV) is the minimum amount a policyholder will receive if they surrender their LIC policy after paying premiums for at least three full years. It's typically 30% of the total premiums paid minus the first year premium.

2. How Does The Calculator Work?

The calculator uses the GSV formula:

Where:

• \( Total\ Premiums \) — Sum of all premiums paid in rupees
• \( First\ Year\ Premium \) — Premium paid in the first year in rupees
• \( 30\% \) — Standard GSV percentage for policies surrendered after 3 years

Explanation: The formula accounts for the fact that first year premiums typically include higher charges and commissions.

3. Importance Of Surrender Value Calculation

Details: Understanding surrender value helps policyholders make informed decisions about continuing or terminating their policies, especially in financial emergencies.

4. Using The Calculator

Tips: Enter total premiums paid and first year premium amounts in rupees. Both values must be positive numbers, with total premiums greater than first year premium.

5. Frequently Asked Questions (FAQ)

Q1: When can I surrender my LIC policy?
A: You can surrender after paying premiums for at least three full years. Earlier surrenders may not receive any value.

Q2: Is GSV the final amount I receive?
A: No, GSV is the minimum guaranteed amount. The actual surrender value may be higher if bonuses are included.

Q3: Are there tax implications on surrender value?
A: Yes, surrender values may be taxable depending on policy type and surrender timing. Consult a tax advisor.

Q4: Can I get a loan instead of surrendering?
A: Yes, most LIC policies allow loans up to a percentage of surrender value, which may be a better option.

Q5: How accurate is this calculator?
A: This provides an estimate of GSV. For exact values, contact LIC with your policy details.