Rytvae Consulting · Think Right · Invest Right
Surrender Value Calculator
Result
Chart
Show formula & working
Paid-up value = Sum assured × premiums paid ÷ premiums payable + bonuses
GSV = premiums paid × GSV factor + bonuses × bonus factor · SSV = paid-up value × SSV factor (or discounted to today) · Surrender value = higher of GSV and SSV
Details
IRDAI rules on surrender value of life insurance policies: rates and rules as of 12-Jun-2024 · Source: IRDAI Master Circular on Life Insurance Products (IRDAI/ACTL/MSTCIR/MISC/89/6/2024, 12 June 2024), paras 25.2 and 26.2–26.4. Every figure based on it stays editable.
IRDAI rule on policy loans: rates and rules as of 31-Oct-2026 · Source: IRDAI Master Circular on Life Insurance Products (IRDAI/ACTL/MSTCIR/MISC/89/6/2024, 12 June 2024), under the IRDAI (Insurance Products) Regulations, 2024 — the current master circular on irdai.gov.in when checked. Every figure based on it stays editable.
How this works
Surrendering a traditional policy early usually returns much less than the premiums paid, because early premiums carry the policy's costs.
Before surrendering, compare the alternatives: keep it as paid-up, or take a policy loan.
Frequently asked questions
When does a policy get a surrender value?
Under IRDAI rules, the special surrender value becomes payable after the first policy year once one full year's premium has been paid (immediately for single-premium policies and premium terms under five years).
Where are the factors?
In the policy document or benefit illustration. Ask the insurer for the exact surrender quote.
Is the surrender amount taxable?
It can be, depending on the policy and premium levels. Check before you surrender.
Reviewing your cover?
Talk to Rytvae about how much cover you need and what your policy wording really pays.