Work out policy surrender value instantly with clear inputs, formula shown and shareable results.
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.
Guaranteed surrender value
GSV = Total premiums paid x Surrender factor for the years paid
Total surrender value
Surrender value = GSV + Proportionate accrued bonus
Indicative estimate using generic surrender factors. Actual values follow the policy's own surrender scale and regulatory minimums. Not insurance or financial advice.
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.
Making the policy paid-up: cover reduces proportionately but no further premiums are due and the policy stays in force to maturity.