Should you surrender your moneyback policy?
Abhishek Kumar's role: Quoted
Abhishek Kumar explained that money-back policies pay a large share of early premiums out as agent commission, which is why surrender is not offered in the first years and early surrender values are low. He suggested a term plan could provide cover at a lower premium.
More of Abhishek's views on insurance
Business Insider India uses the case of a policyholder ten years into a 20-year money-back policy to explain how surrender value works. It discusses why surrendering in the early years is costly and when it may make sense to hold the policy until maturity.
