Hey there,
I purchased an insurance policy for myself not just because of the security they ensure in case of unforeseen circumstances, but also because I knew what is surrender value in insurance. I would be glad to share that information with you so that you can also make use of such benefits.
A surrender value is an amount that is paid by the insurance company to us when we terminate or surrender our insurance policy before its maturity date. Usually, any insurance policy is eligible for a surrender value after three years of the purchase of that insurance. SO, post three years you can surrender your policy and get the surrender value in cash.
Now that we know what is surrender value in insurance, let’s understand the types of surrender value.
- Guaranteed Surrender Value:
As the name suggests, it is the guaranteed amount of money which will be received by us when we surrender our insurance policy. It is calculated by multiplying the total premium paid by the surrender value factor. The surrender value factor is the percentage of the total premium that has been paid.
- Special Surrender Value:
It is generally higher than what is received in a guaranteed surrender value. This is because a special surrender value is calculated on the basis of premiums paid. the sum that is assured, policy term, and bonuses. All these factors are dependent on the insurance company.
The surrender value can be easily calculated with an online calculation tool known as
Surrender Value Calculator | LICThis tool can be accessed through the official website of any insurance-providing company. All that is required is for you to enter some basic information asked and then you can get not only the surrender value but also accumulated bonuses, paid value, and many more.
I hope I helped you in understanding what is surrender value. Do let me know in the replies if you have any more doubts.
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What is Surrender Value?
Arushi Sinha
1.9k Views
1
3 Year
2022-04-21T17:26:29+00:00 2022-04-21T17:26:31+00:00Comment
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