Glossary: Surrender value

The amount of cash a policyholder receives from the life insurance company if they surrender (terminate) a life insurance policy before it becomes payable on death or maturity. Surrendering an investment-linked life assurance policy early is likely to be a poor deal as most policies load the majority of the policy’s fees and charges in the early years and so surrendering the policy back to the life company will result in a very low payout.

Relevant to: Life insurance

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