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₹1 crore life insurance policy: Thinking of exiting before maturity? Check your surrender value before you take decision
Mint 1 hr ago·26 Oct 2026, 11:04 am
Life insurance policies are long-term financial commitments designed to provide security. Surrendering a policy before its maturity date, especially a high-value one like a ₹1 crore plan, is a significant decision that can impact your finances. Investors should understand that surrendering means you lose the death benefit coverage and may not receive the full value of the premiums paid.
The amount you receive if you surrender a policy is known as the surrender value. This value is not the same as the sum assured. It is a portion of the premiums paid, minus any applicable charges. The exact payout depends on the type of policy, such as a term plan, a Unit Linked Insurance Plan (ULIP), or a traditional endowment plan. Different plans have different rules for calculating this value.
Before cancelling a policy, it is crucial to check the surrender value. This helps you avoid a financial loss. You should also review the terms of the policy to see if there are any penalties for early exit. Investors should weigh the immediate cash payout against the long-term benefits of the insurance cover and the potential growth of the investment component.
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