LIC Paid-Up Value Calculator
Evaluate your policy values before halting premiums. Estimate the reduced Paid-Up Sum Assured, accrued locked bonuses, and immediate cash surrender options.
Projected Paid-Up Value
₹2,30,000
This graph displays your asset value preservation layout: your reduced Sum Assured plus accrued locked bonuses vs. the potential wealth lost by halting premiums.
Interactive Policy Paid-Up Transition Timeline
Understand exactly what happens step-by-step when you stop paying your premium, from grace periods to the automatic conversion and terminal payouts.
Policyholder halts regular premium payments. The standard 30-day grace period for the due premium expires.
LIC Paid-Up Policy Slabs: Eligibility, Formulas, & Conservation
When standard cash flow disruptions occur, letting your policy acquire **Paid-Up status** is almost always superior to surrendering it or letting it lapse completely. A paid-up policy preserves your built-up equity, continuing to cover you at a reduced Sum Assured till maturity without requiring further premium payments.
| Policy Status | Premium Requirement | Life Protection Cover (SAD) | Maturity Returns |
|---|---|---|---|
| Lapsed (No Value) | Paid for less than 2 full years | Terminated immediately | ₹0 (All invested cash forfeited) |
| Paid-Up Active | Paid for 2+ full years (PPT >= 10) | Reduced Sum Assured on Death | Reduced Sum Assured + locked vested bonuses |
| Fully Active Policy | Paid fully as scheduled till PPT | 100% Full Sum Assured on Death | Full Sum Assured + all compounded bonuses + FAB |
The Actuarial Paid-Up Formulas
LIC uses a strict mathematical ratio to downscale the policy elements. Here are the core formulas implemented in our backend:
Paid-Up Sum Assured
Your fundamental Sum Assured is scaled down according to premium completion ratio:
Paid-Up SA = Basic SA × (Premiums Paid / PPT)Vested Bonus Lock-In
Previously added bonuses are frozen. No new reversionary bonuses or FAB will be declared:
Vested Bonus = annualBonusRate × (SA / 1000) × Years PaidPaid-Up vs. Surrendering: A Critical Comparison
Many policyholders make the expensive mistake of surrendering their policy because they cannot pay future premiums. Understanding the differences avoids heavy financial losses:
Paid-Up Path (Recommended)
- Life Cover continues: Nominee remains protected under a reduced SAD cover.
- Full Value at Maturity: The full Paid-Up SA + locked bonuses are paid at maturity.
- No surrender penalty: Avoids the heavy discounted surrender charges applied by the insurer.
- Tax Shield: Pays out fully tax-free u/s 10(10D).
Immediate Surrender Path
- Cover terminates immediately: All nominee death protection ceases today.
- Immediate Cash Discount: LIC applies a Guaranteed Surrender Value (GSV) discount factor (e.g. paying out only 30% to 50% of the built-up assets).
- Immediate Liquidity: Only useful if cash is required urgently today.
- Tax Liability: Surrender values may trigger income tax if premiums didn't comply with Section 10(10D) slabs during payment years.
Tax Regulations & Paid-Up Policies
Under **Section 10(10D)** of the Income Tax Act, the final maturity or death claim payout from a paid-up active policy remains **100% tax-free**, provided the policy was tax-compliant during its premium-paying years.
- No TDS on Maturity: LIC processes final paid-up maturity payouts directly via NEFT without any tax deductions at source.
- Surrender Values Exception: If you surrender the policy instead of letting it mature as paid-up, the proceeds could be taxable under section 56(2)(x) if the annual premiums exceeded 10% of SA during active years.
Frequently Asked Questions (FAQs)
Can I take a loan against a Paid-Up LIC policy?
Can I revive a Paid-Up policy back to Fully Active status?
What happens if I stop paying premiums before completing 2 full years?
Are riders active on a Paid-Up policy?
Don't Just Take Our Word For It
See how our actuarial precision is helping thousands make smarter, faster insurance decisions every single day.
"Excellent calculator! It helped me understand the premium structure before meeting with an LIC agent. The estimates were quite close to the actual premium I was quoted. Very user-friendly interface."
"I used this calculator to compare different policy types. The breakdown helped me choose the right endowment plan for my family. Saved me a lot of time and confusion. Highly recommended!"
"Good tool for getting a quick estimate. The calculator is easy to use and provides clear results. However, I noticed the actual premium was slightly higher due to my medical history, which is expected."
"This calculator made my insurance planning so much easier! I could test different scenarios and find the best policy that fits my budget. The maturity amount calculation was particularly helpful."
"As a first-time insurance buyer, this tool was invaluable. It helped me understand how premiums work and what to expect. The FAQs section also answered many of my questions. Great resource!"
"Very helpful calculator! I appreciated being able to compare different policy types side by side. The interface is clean and professional. Would love to see more policy options added in the future."
"Used this calculator before purchasing my LIC policy. The premium estimate was accurate, and it helped me plan my finances better. The design is modern and the tool is very intuitive to use."
"Excellent tool! I calculated premiums for multiple scenarios and found the perfect policy for my needs. The maturity amount projection helped me plan for my retirement. Thank you for this resource!"
Average Rating
Premium Calculations
User Satisfaction
Explore More LIC Calculators
Find the perfect calculator for your insurance and investment needs
Kanyadan Policy
Most PopularPlan for your daughter's future and marriage expenses with death benefit protection
Jeevan Labh
EndowmentLimited premium payment endowment plan with guaranteed returns
Jeevan Utsav
Whole LifeWhole life plan with guaranteed additions and lifelong income
Whole Life Plan
Whole LifeCompare Plan 945 & Plan 871 side-by-side with lifetime survival returns
Jeevan Saral
FlexibleSimplified whole life assurance with flexible premium options
Surrender Value
UtilityCalculate GSV, SSV and total loss from surrendering your LIC policy
Term Plan
ProtectionPure life cover at lowest premiums — maximum protection per rupee
Pension Plan
RetirementPlan retirement with guaranteed pension and annuity income
Child Plan
ChildSecure your child's education and career milestones
SIP Calculator
InvestmentCalculate future value of monthly SIP investments with compounding
Single Premium
Lump-SumCalculate lump-sum premium rates, maturity bonuses, and loan limits for Plan 917
Health Insurance
Health & TaxModel premiums and Section 80D tax savings for Arogya Rakshak & Cancer Cover