Is LIC policy surrender beneficial?

No, surrendering a LIC policy is never beneficial as the amount received would be very less when compared with the total premiums paid. In the first two years, the policy cannot be surrendered. After the completion of 2 years and the beginning of the third year, the surrender value can be obtained. The surrender value would be lesser than the total premiums paid.

The below-given chart would help you to understand the surrender value.

Under this plan, the total premium paid for the first two years is Rs. 47,978/-. The surrender value given at the beginning of the third year is Rs. 13,924/- only. Surrendering an Insurance policy is never recommended. In case of an emergency, no one can help you, like your Insurance policy.

Instead of surrendering the policy, the loan can be taken by submitting the policy.