How to check the surrender value of an LIC policy?

Endowment insurance plans, a mixture of an investment and a life cover, are long-term contracts, usually for 10, 20 or even more years. However, it is possible to terminate (surrender) them midway and seek whatever has been accumulated till then. But since the contract is terminated midway, only a certain portion of the total accumulation is returned, known as the 'surrender value'. The remaining is considered the penalty for terminating the policy midway. Most insurance policies allow surrendering it only after paying the premium continuously for three years. However, this may differ for different policies.

This article was originally published on April 22, 2022.