Surrender value
The amount a life insurer pays if you end a savings policy before it matures.
Surrender value is what a life insurer pays if you end a savings policy early. Under IRDAI’s 2024 rules you get the higher of the guaranteed and the special surrender value, usually less than you paid, and your cover ends. See surrendering a life insurance policy.
Questions people ask
What is surrender value?
It's the payout you get if you end a savings-type life policy before maturity. Under IRDAI's 2024 rules, it is the higher of the Guaranteed Surrender Value and the Special Surrender Value.
When does a policy acquire a surrender value?
Per IRDAI's 2024 Master Circular, after the first policy year is complete and one full year's premium is paid. For single premium policies and those with a premium paying term under 5 years, as soon as the first full premium is received. Pure risk plans don't acquire one.
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