Explained: Is surrendering your moneyback policy a wise idea?
Last Update Date: 06-10-2026
Published by Business Insider India
Abhishek Kumar's role: Quoted
Abhishek Kumar explained that a large share of early premiums goes to agent commission, so early surrender is not available, and said that after about three years the surrender value tends to begin near 30% of premiums paid.
More of Abhishek's views on insurance
The article examines whether a policyholder should surrender a money-back life insurance policy. It explains how surrender value is worked out, why exiting in the first three years or the last five years tends to be costly, and compares holding the policy with buying a term plan and investing the rest.
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Explained: Is surrendering your moneyback policy a wise idea?