Surrender value

Surrendering means voluntarily terminating a policy and taking whatever value has accrued. It is normally less than the premiums paid, particularly in the early years.

Surrender is not the same as the free-look period, which is a short window after issue for returning a policy you have decided against.

Related terms

• Free-look period A window after receiving the policy document in which you can return it and cancel.
• Paid-up value A reduced sum assured that continues after premiums stop, once enough have been paid.
• Lapse What happens to a policy when premiums stop being paid and the grace period expires.

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