Policy: keep or surrender?
Keep paying the policy, or stop?
For an LIC or other endowment / money-back policy: compare keeping on paying, stopping (paid-up) and surrendering to invest the money — and see what the policy really earns a year.
Planning estimates for education — not financial advice. Rates and returns change.
Your policy
Fifty thousand rupees
Seven lakh rupees
Sum assured + bonuses, from your policy statement.
Five lakh rupees
The sum assured.
Used if blank: ₹0 — no life cover counted
What the insurer would pay now
Two lakh rupees
Ask the insurer or check the app — get it in writing.
Three lakh fifty thousand rupees
Used if blank: not compared — enter it to add “Stop paying” to the comparison
A year, after tax.
Used if blank: 6.25% — a 1-year bank FD today (before tax — lower it for your tax)
Used if blank: ₹0 — not counted — add it if anyone depends on you
Keep paying
In 10 years you'd have
₹7 L
Premiums still paid
₹5 L
Stop paying (paid-up)
In 10 years you'd have
₹10.59 L
Premiums still paid
₹0
Surrender and investMost at the end
In 10 years you'd have
₹10.75 L
Premiums still paid
₹0
Keeping this policy earns about 0.0% a year — counting what you give up by not surrendering today, and the premiums still to pay.
What the numbers show
- ⚠️Keeping the policy earns about 0.0% a year on what you'd get today plus the premiums still to pay. Your other choice earns 6.25% a year in this comparison.
- 📌On the maturity date: keep paying → ₹7 L; surrender and invest → ₹10.75 L; stop paying (paid-up) → ₹10.59 L.
- ⚠️Surrendering ends the life cover of ₹5 L. If anyone depends on you, enter the yearly cost of a term plan for similar cover — it is counted against surrendering.
- 📌The surrender and paid-up values come from your insurer — ask for them in writing. Early in a policy, surrender values are low.
- 📌Maturity money is usually tax-free; check the rules for your policy. Use an after-tax return for the money you'd invest instead.
Educational planning estimates, not financial advice.
Money you'd have, year by year
- Keep paying
- Stop paying (paid-up)
- Surrender and invest
Keeping the policy pays only at the end; the other ways grow every year.
How it's worked out
Each way spends the same each year: the premium. “Surrender and invest” puts today's surrender value and each premium (less a term plan, if you enter one) into savings at the return you chose. “Stop paying” invests the premiums and gets the paid-up value at the end.
The policy's yearly return is the rate at which today's surrender value plus the premiums still to pay grow into the amount it pays out.