LIC Jeevan Labh surrender value

When (and when not) to surrender Jeevan Labh

Jeevan Labh follows LIC's standard endowment surrender mechanics — Guaranteed Surrender Value (GSV) kicks in after 2 full years' premiums are paid (3 in older terms), and Special Surrender Value (SSV) typically exceeds GSV from year 5 onwards. The vested simple reversionary bonuses are also surrendered at a discount (typically 25–40% of face value, varying by year). The headline for first-time surrenderers: don't, unless you absolutely have to. Years 1–2 you get nothing; years 3–7 you usually recover under 60% of premiums paid; only after year 8 does the policy become close to break-even on what you put in. After year 12 or so, most policies surrender for more than total premiums — but you're still leaving the FAB and post-PPT bonuses on the table.

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.