Not a good idea: Surrendering insurance policy early entails higher loss

Media reports suggest policyholders have been surrendering their life insurance policies, either to avoid paying premiums or to raise much-needed liquidity

Topics
Insurance | Coronavirus | Lockdown

Bindisha Sarang 

Loss of income since the start of Covid-induced lockdowns has forced people to resort to a variety of desperate measures. Media reports suggest policyholders have been surrendering their life insurance policies, either to avoid paying premiums or to raise much-needed liquidity.

When you terminate a policy before maturity, the amount that the insurer pays you is the surrender value. Policyholders who need money should explore alternatives, so that they do not have to lose out on the protection provided by a life insurance policy. And if they must surrender, they should understand ...
First Published: Tue, August 11 2020. 20:00 IST