Meaning
Surrender Value refers to the amount an policyholder or investor receives if they choose to terminate an insurance policy or investment product before its maturity.How It’s Calculated
It’s typically calculated based on premiums paid, policy term completed, and applicable charges or fund value deductions.Factors Affecting It
Factors include policy type, surrender charges, investment performance, and how long the policy has been active.Implications of Surrendering
Surrendering often results in receiving less than the total premiums paid, and loss of future coverage or benefits.Author
