Prices Increasing soon Prices Increasing Soon

Top 5 Surrender Value QNAs

Do you want to surrender your insurance policy but don’t know how?

Gets ₹1 Cr. Life Cover at just
COVID-19 Covered
The Policybazaar Advantage
Dedicated claim support for family FREE
Upto 10% discount for buying online
Only certified experts will call you on 100% recorded lines
We are rated~
6.7 Crore
Registered Consumers
Insurance Partners
3.4 Crore
Policies Sold

#All savings and online discounts are provided by insurers as per IRDAI approved insurance plans | Standard Terms and Conditions Apply

By clicking on "View plans" you agree to our Privacy Policy and Terms of use

~Source - Google Review Rating available on:-

Life is Unpredictable! Protect your family’s future
Get ₹1 Crore Life cover starting from ₹384/month+
We don’t spam
Check Your Premium Now
Please wait. We Are Processing..
Get Updates on WhatsApp
The Policybazaar Advantage
Policybazaar Advantage Icon
Dedicated claim support for family FREE
Policybazaar team will help and support you at the time of claim. A personal claim handler from our team of experts will get in touch with you when your nominee applies for a claim on our website.
Policybazaar Advantage Icon
100% calls recorded to ensure no mis-selling
We will make sure you get what is promised by the advisors. We conduct regular monitoring of our calls to make sure you get the best experience.
Policybazaar Advantage Icon
Exclusive lifetime discount upto 5% for buying online
The discounts will be valid for the entire policy payment term and is not available if you choose to buy the insurance through offline agents.
Policybazaar Advantage Icon
Advisors available in your city
Our advisors are available in more than 55 cities across India and can help you at your doorstep in understanding the plans and in documentation.
Policybazaar Advantage Icon
Refund at the click of a button
In case you aren’t happy with your purchase, you can cancel your policy hassle-free at the click of a button. We will help you with the cancellation and refund of your policy.

Here we have collated the top five queries and their answers for your benefit. Read on:

Question 1: What is surrender value?

Surrender value is what an insurance company pays if the insured surrenders the life insurance policy. The life cover provided by the insurer ends with its surrender as it results into the termination of the contract between the insured and insurer. On surrender, the policyholder gets the fund value minus charges that the insurer levies on account of premature policy termination. As per IRDAI regulations, no surrender charges are levied upon policies if the policyholder chooses to surrender the policy after five years.

*All savings are provided by the insurer as per the IRDAI approved insurance plan. Standard T&C Apply

Further in this article, we have elaborately discussed everything you need to know about COVID_19 and life insurance.

Question 2: Which policies can be surrendered?

You can surrender such policies as endowment and ULIPs, which offer both insurance and investment. Surrendering term plans which do not have maturity benefits will lead to a policy lapse.

Question 3: When does a policy acquire surrender value?

A regular premium insurance policy acquires the surrender value if the policyholder has continuously paid premiums for at least three years. If after paying premiums for three years, you do not wish to continue the policy, you can freeze your investment at that point of time by converting it into a paid-up policy.

Question 4: What happens when I surrender the policy?

All rights available to you as a policyholder cease to exist once the policy is surrendered. Therefore, you should surrender the policy only if you have been sold a wrong insurance policy or the features of the policy are different from what were promised at the time of issuance.

Also if you surrender the policy during the initial years, say 2 or 3 years from its inception, the surrender value would be approximately 30% of the premiums paid to date. Also insurers exclude the premium paid in the first year while computing the surrender value. In case of ULIPs, the insured suffers a major loss as charges in these schemes are front-loaded. A sizeable chunk of the premium paid in the initial years goes towards meeting charges, leaving behind a meager amount for policyholders.

Further in this article, we have elaborately discussed everything you need to know about COVID_19 and life insurance.

Question 5: What is the procedure for surrendering a policy?

To initiate the policy surrender, follow the below-mentioned steps:

  • Submit a duly filled surrender form

  • A self-attested copy of ID-proof

  • Cancelled cheque

*All savings are provided by the insurer as per the IRDAI approved insurance plan. Standard T&C Apply

Once the insurer receives the surrender request, the customer gets a notification call for the payout. The entire process takes 7-10 days to complete.

You may also like to read : Understanding Surrender Value In Insurance

Different types of Plans

Premium By Age

Life insurance articles

Recent Articles
Popular Articles
What High Net Worth Individuals (HNIs) Do To Secure Their Family?

09 Aug 2023

High net worth individuals often opt for life insurance plans to
Read more
A Review Of ICICI Prudential Life Insurance

28 Jun 2023

“Policy Bazaar insurance clarified the term policy for me, so
Read more
A Review Of HDFC Life Insurance

27 Jun 2023

“I recently bought an HDFC term plan and it is the best
Read more
Best Life Insurance Policy in India with High Returns

20 Jun 2023

The best life insurance policy in India is a type of life
Read more
Which Insurance is Best in India?

20 Jun 2023

Insurance is a financial product that transfers the risk to a
Read more
How to Check LIC Policy Status, Details, Statement via Online/SMS/Call
Last year, Mr. Rajiv Verma bought a Child LIC policy to provide financial security for his kid's future. However
Read more
SBI Life Insurance 50,000 per year Plan for 5 Years
Life insurance is not only about the financial protection of the family but also about working for life’s
Read more
PLI Surrender Value Calculator
PLI Surrender Value Calculators have proven to be one of the simple tools for digitally savvy customers. PLI
Read more
LIC Login: LIC Customer Login Process at Online Portal
LIC Customer Login portal allows the policyholder to easily avail the online facilities at the comfort of their
Read more
SBI Life Insurance Policy Surrender Value Calculator
Are you planning to surrender your SBI life insurance plan? But, are you aware of the amount attached to the
Read more

View Plans
Download the Policybazaar app
to manage all your insurance needs.