Definition
Surrender (of a policy)
Surrender is ending a savings or pension policy early and receiving its accumulated value (the surrender value). In the early years the surrender value is usually well below the premiums paid, due to charges and penalties; it rises as the policy matures.
Also known as: Surrender value
Surrender is a decision that looks simple but is often expensive. A plan stopped early may return less than you put in. Before deciding, it is worth seeing the current surrender value, any penalties, and what future benefits you would forgo — and for tax questions, to ask an accountant.
In your own life or savings policy, look for the surrender-value table and the early-termination terms. PolicyWallet surfaces references to surrender value and maturity dates, so you can see when the plan starts working in your favour.
Upload your policy — free analysisFrequently asked questions
Why is my surrender value less than what I paid?
The early years carry charges and early-termination penalties. The surrender value improves as the years pass.
Related
Educational content, not insurance advice. PolicyWallet explains what the term means and helps you find it in your own document — it does not assert what your policy covers.