Surrender Value of An Insurance Policy

• March 10, 2020
• CA Chandan Agarwal's Office

Surrender of Insurance Policy means to cash of life insurance policy before benefits are due to be paid. The Surrender Value of an Insurance Policy is the amount given to the insured at a time, when he is unable to pay premium related to Insurance Policy. At a particular time, when insured is not able to pay further premium and he has paid earlier premiums related to surrendered insurance policy. It is cash value of an Insurance Policy at a particular time. It is the portion of premiums paid or another amount recoverable on an insurance policy if the policy is cancelled immediately after having been issued.

Let’s us discuss some more definitions;

It is the amount the policyholder will get from the life insurance company if he decides to exit the policy before maturity.

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