How is the surrender value of a policy calculated?
Akash Prakash, Chennai
The surrender value of an endowment policy is calculated uniquely for each policy and depends across insurers too. Such plans have a pre-defined surrender value table, linked to the number of years of premium paid. Charges in an endowment plan are generally high in the early years and surrender value low. You can surrender the plan now, but be prepared for a low surrender value.
