Free tool

Policy Surrender Value Impact Calculator

Thinking about breaking a policy early? See exactly what that costs -- in dollars, as a share of every premium you've paid, and against simply leaving the money where it is.

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Your numbers

Ask your insurer for this figure, or check your latest policy statement.
Surrendering now costs you
--%

of every dollar you've paid in, versus holding to maturity.

Lost by surrenderingRecovered now
Loss in dollars--
Value if held to maturity--
Implied annual return, holding on--

This compares surrender value to guaranteed maturity value only -- it doesn't account for what else you could do with the freed-up cash. Not financial advice.

How to use this

Every whole life, endowment or par-fund policy has a surrender value that's typically well below what you've paid in during the early years -- that gap is the cost of exiting early, not a fee anyone charges you directly. Enter your total premiums paid, the surrender value your insurer quotes today, the guaranteed maturity value if you hold on, and the years remaining. This shows the loss in plain dollars and as an annualised "return" for staying the course, so you can weigh it against what else that surrender cash could do for you.

Before you surrender

Ask your insurer whether a paid-up or reduced-cover option exists -- it can sometimes avoid this loss entirely while stopping further premiums.