Surrender Value

The surrender value is the actual sum of money a policyholder will receive if they try to access the cash value of a policy. The amount of money paid by the insurer to the insured in consideration later’s surrendering the policy to the former is known as surrender-value. It is the amount the policyholder will get from the life insurance company if he decides to exit the policy before maturity. To receive this value, the policyholder surrenders their rights to future benefits under the policy.

This value is assessed if the policyholder wants to discontinue his policy after premiums have been paid for three consecutive years. It is the amount the policyholder will get from the life insurance company if he decides to exit the policy before maturity. It is less than the premiums already paid. A regular premium policy acquires surrender value after the policyholder has paid the premiums continuously for three years. A number of life insurance policies, in addition to their life insurance components, also have cash accumulation components and thus accumulate some value. However, you need to make sure that you keep track of this policy until it matures. It is the amount of cash that becomes available to an insured person upon the cancellation of his/her insurance policy.

Surrender value is the sum of money that is payable by the insurance company when you terminate your insurance policy before its maturity.  Once you decide to exit the insurance policy, all the benefits associated with it, including the protection cover, will cease to exist. The surrender value of a life insurance policy can be calculated easily using an effective online tool called surrender value calculator. The surrender value of a life insurance policy is the amount of money you receive if you decide that you no longer wish to continue with the policy. You can access the surrender value calculator online on the website of an insurance company. You need to provide some of the basic information to calculate the surrender value instantly. Essentially, life insurance surrender value refers to the amount an insurance company will offer an insurance owner who chooses to give back their life insurance policy.