Policy Surrender Value Calculator

Work out policy surrender value instantly with clear inputs, formula shown and shareable results.

About Policy Surrender Value Calculator

Surrender value is a prescribed proportion of premiums paid, rising with the number of years paid, plus a share of accrued bonuses. Policies surrendered in the first two years usually acquire no value at all, and even at six years the shortfall against premiums paid is typically large.

Formulas

Guaranteed surrender value

GSV = Total premiums paid x Surrender factor for the years paid

Total surrender value

Surrender value = GSV + Proportionate accrued bonus

Worked example

With the default values below, Policy Surrender Value Calculator returns Estimated surrender value of $285,600.00. Change any input above and every figure here is recalculated in your browser.

Inputs used

Total premiums paid (excluding rider premiums): 480,000
Years premiums paid: 6
Original policy term: 20 years
Accrued bonuses to date: 120,000

Results

Estimated surrender value: $285,600.00
Guaranteed surrender value: $249,600.00
Surrender factor applied: 52.00%
Shortfall against premiums paid: $194,400.00

Step by step

1Values used
2Guaranteed surrender value
3Total surrender value
4Estimated surrender value= 285,600.00
5Guaranteed surrender value= 249,600.00
6Surrender factor applied= 52.00
7Shortfall against premiums paid= 194,400.00

Assumptions and limits

The result is derived only from the 4 inputs listed above. Anything not among them is not part of the calculation.
In particular, this calculator does not take inflation, tax, fees or charges or compounding frequency into account.
Figures are rounded for display to 2 decimal places, so totals built from several rounded parts can differ slightly from the unrounded arithmetic.
Indicative estimate using generic surrender factors. Actual values follow the policy's own surrender scale and regulatory minimums. Not insurance or financial advice.

How these calculators are built and tested is described on the Methodology page. If a figure looks wrong, please report it.

Indicative estimate using generic surrender factors. Actual values follow the policy's own surrender scale and regulatory minimums. Not insurance or financial advice.

Frequently Asked Questions

Is surrendering ever the right choice?

Sometimes — if the policy is a poor product and the released capital can be redeployed. Compare the surrender value with the paid-up alternative first.

What is the alternative to surrender?

Making the policy paid-up: cover reduces proportionately but no further premiums are due and the policy stays in force to maturity.