Life Insurance Term
Surrender Value
The amount you get if you exit a policy before maturity.
What is Surrender Value?
Surrender value is the amount a savings or ULIP policy pays you if you terminate it before maturity, after any applicable lock-in. It's typically lower than what you'd get by staying invested to term.
Pure term plans have no surrender value because they carry no savings component.
Example
Surrendering a ULIP after the 5-year lock-in returns its fund value, less any charges.
Related terms
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