LIC Bima Jyoti surrender value

When (and when not) to surrender Bima Jyoti

Bima Jyoti follows a non-par endowment surrender framework. GSV becomes available after 2 full years' premiums and is computed against cumulative premiums plus accrued GAs. Practical year-by-year: years 1–2 recover 30–35%; year 5 around 50–55%; year 10 typically 75–80%; year 15+ surrender comfortably exceeds total premiums but the accrued GAs are returned at a discount (typically 30–50% of face value, varying by year). Because the GA is the entire return story for non-par, the discount on surrendered GAs is the single biggest variable in the surrender outcome — worth confirming with the LIC branch before initiating. Loan against policy is available after 3 full years and is usually preferable to surrender for short-term liquidity needs.

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.