LIC tools · Policy analyzer
Should you keep, surrender, or pause your LIC policies?
Tell us about the policies you currently hold. We pull the latest declared bonus rates straight from our verified dataset, then compare holding to maturity against surrendering or making the policy paid-up and reinvesting at three benchmark return rates — FD/debt 6 %, equity index 10 %, and aggressive equity 14 %.
Your Policies
Add up to 5 LIC policies you currently hold. We use the declared bonus rates from /datasets/lic-bonus-history/ for each plan, then project hold-to-maturity against surrendering or making the policy paid-up and reinvesting at three benchmark return rates.
Don't see your plan? Verified bonus data is being collected for the rest — see /datasets/lic-bonus-history/.
Best-Case Portfolio Outcome
Insurance also pays a death benefit while the policy is in force — surrendering ends that cover. If anyone depends on you financially, replace with a pure term plan first.
Policy A
Best: Surrender now → reinvest at 14%| Strategy | Cash today | At original maturity (yr 21) |
|---|---|---|
Hold to maturity (LIC pays you) Continue paying every premium. LIC pays SA + accrued bonuses + FAB at maturity. | — | ₹8,77,500 |
Surrender now → reinvest at 6% Take ₹65,000 today, plus invest each saved premium of ₹26,000/yr — all at 6% (FD / debt fund). | ₹65,000 | ₹8,32,609 |
Surrender now → reinvest at 10% Take ₹65,000 today, plus invest each saved premium of ₹26,000/yr — all at 10% (Equity index (long-run)). | ₹65,000 | ₹12,33,366 |
Surrender now → reinvest at 14% Take ₹65,000 today, plus invest each saved premium of ₹26,000/yr — all at 14% (Aggressive equity). | ₹65,000 | ₹18,54,410 |
Make paid-up → invest saved premiums at 6% Stop paying. LIC pays a reduced ₹2,06,548 at original maturity. Each saved premium invested at 6% (FD / debt fund). | — | ₹8,74,033 |
Make paid-up → invest saved premiums at 10% Stop paying. LIC pays a reduced ₹2,06,548 at original maturity. Each saved premium invested at 10% (Equity index (long-run)). | — | ₹11,41,241 |
Make paid-up → invest saved premiums at 14% Stop paying. LIC pays a reduced ₹2,06,548 at original maturity. Each saved premium invested at 14% (Aggressive equity). | — | ₹15,32,037 |
Surrender / paid-up estimates use the IRDAI standard factor shape (same as our surrender-value guide). Per-plan brochures may differ within ±5%; for legally-binding numbers request a paid-up quote from your servicing branch.
How we compute each strategy
- Hold to maturity — sum assured + (declared SRB × term × SA / 1,000) + FAB at maturity. Bonus rates come from our verified dataset; you don't enter them.
- Surrender now → reinvest — today's lump-sum exit value is max(GSV, SSV) using IRDAI's standard factor shape. We then assume you invest that lump plus every saved future premium in the chosen instrument (FD, equity index, or aggressive equity) and compound to the original maturity year.
- Make paid-up → invest saved premiums — LIC pays a reduced sum assured = SA × (years paid / PPT) at original maturity, plus the bonuses already vested. The premiums you would have paid are invested in the chosen instrument and compounded to maturity.
- Why three rates? Future returns are uncertain. Showing all three benchmarks side-by-side lets you decide whether the recommendation is robust or knife-edge.
What this tool does not do
- It does not model the death benefit you keep while a policy is in force. Replace surrendered cover with a pure term plan first if anyone depends on you financially.
- It does not model section 10(10D) tax edge cases on surrender proceeds. Most life-insurance maturity is tax-free; surrender of policies under 5 years can be taxable. Confirm with your CA.
- It does not include rider premiums or alternative ULIP / pension projections. Endowment-family plans only.
- It does not call LIC. For legally-binding numbers request a paid-up quote from your servicing branch.