Opportunity cost vs premium loss: When to surrender your policies
Last Update Date: 06-10-2026
Published by Mint
Abhishek Kumar's role: Quoted
Abhishek Kumar said converting a policy to paid-up status suits those torn over surrendering or not needing cash immediately, freeing future premiums for other investments, but pointed out it is not ideal given the time value of money.
More of Abhishek's views on insurance
The article examines whether to surrender traditional endowment life insurance policies, which often return less than the premiums paid. It walks through a case study, comparing a policy's internal rate of return with alternatives, and covers other routes such as making the policy paid-up, assigning it or taking a loan against it.
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Opportunity cost vs premium loss: When to surrender your policies