Claim Settlement Ratio of 99.02%~


  • World's First Music Video Created Retired Senior Citizens

  • Apne life goals ki guaranteed1 hona Ye Bhi Sahi Hai

  • Fulfill your Life Goals with Bajaj Allianz Life Goal Assure

  • Here's a Comprehensive Tool To Plan Your Child's Future

  • There is lot to remember in Life, Set renewal premium payments to Auto Pay

  • Get Life Cover worth Rs.1 Crore at Rs.20 per day2 – Bajaj Allianz Life Smart Protect Goal

  • Get your Life Goals Done with Bajaj Allianz Life Smart Assist – BINA MILEY MIL-KAR

  • Paying your Renewal Premium is Quick and Easy!

  • Know the right amount of Insurance you need in just a few steps!

  • Avail Term Insurance Tax Benefits under Section 80D

  • Know how to invest money during the covid-19 pandemic!


Thanks for sharing your details, A Sales representative from
Bajaj Allianz Life will contact you shortly.

Dear Customer, we request you to connect with us in our next business working hours, (Monday to Saturday 24*6) Thank you, Have a great day ahead


Terms & Conditions

I hereby authorize Bajaj Allianz Life Insurance Co. Ltd. to call me on the contact number made available by me on the website with a specific request to call back. I further declare that, irrespective of my contact number being registered on National Customer Preference Register (NCPR) or on National Do Not Call Registry (NDNC), any call made, SMS or WhatsApp sent in response to my request shall not be construed as an Unsolicited Commercial Communication even though the content of the call may be for the purposes of explaining various insurance products and services or solicitation and procurement of insurance business


Please refer to BALIC Privacy Policy

Get 1 Crore Life Cover@ Rs.20 Per Day2

Covers COVID-19 Claims##

How to Calculate the Cash Surrender Value of Life Insurance? | Bajaj Allianz Life

Pay lower premium3 on online term plans

Please enter a Name
Please enter a Mobile No.
Please check the box to proceed
WS_LIGuideHome_Banner_EN 307 38983691 WS_LIGuideHome_Banner_HI 307 38983695
WS_LIGuideHome_Banner_Mob_EN 307 38983693 WS_LIGuideHome_Banner_Mob_HI 307 38983677
Please Select Language

2,3,##T& C Apply | BJAZ-BN-EC-03414/22

2,3,##T& C Apply | BJAZ-BN-EC-03414/22

How to Calculate the Cash Surrender Value of Life Insurance?


June 07, 2022

By : Bajaj Allianz Life

A life insurance policy can help you secure the financial future of your family members, even if anything unfortunate were to happen to you. However, there may be certain situations where you may need to surrender the policy before it matures. This is where knowing about the surrender value of your life insurance plan becomes essential.


Surrender Value and Associated Charges


Whether you’re tired of paying high premiums or you no longer have beneficiaries who need the death benefit from your plan, you need to know the cash surrender value of your life insurance policy before terminating it.

Cash surrender value refers to the amount you will receive from your insurer when you cancel a plan before it matures. In other words, if you terminate your policy mid-term, you may be eligible for a certain payout amount against the premiums you’ve paid. This depends up on the plan you have opted for and its underlying terms and conditions. Additionally, as per IRDAI (Unit Linked Insurance Products) Regulations, 2019, in case of a ULIP if you choose to terminate the policy after 5 years, no surrender charges can be imposed on it by your insurance provider. However, in case of other products, charges will be applicable.

If you’re wondering how this surrender value is calculated, fret not, for we’ve got you covered! In this article, we review the process of calculating the surrender value of a life insurance plan as well as the alternatives to surrendering your policy.


How is Cash Surrender Value Calculated?


Calculating the surrender value of your insurance plan is quite simple. All you need to do is add the total premiums paid and subtract the charges levied by your insurer for surrendering the plan mid-term.

However, this is not a blanket calculation process. Before you can calculate the surrender value of your life insurance policy, you must know the difference between guaranteed surrender value and special surrender value as the cash surrender value of your policy will be hinged on these two key concepts when it comes to traditional life insurance plans. For ULIPs, a discontinuance charge will apply between the first to fifth years.


Surrender Values and How to Calculate Them


Guaranteed Surrender Value: This is the amount that is guaranteed to the policyholder in case there is a voluntary termination of the policy by the policyholder prior to the maturity of the policy. You can claim this surrender value after 3 years of paying your insurance premiums.


Alternatives to Surrendering Your Life Insurance Plan


While knowing the cash surrender value of your policy is essential, surrendering it may not always be the most prudent course of action when in need of cash.

Alternatively, if you have an endowment plan, you can also borrow against the said policy after you’ve paid premiums for at least 3 years. For ULIPs, they do not have a loan option, but they do offer a partial withdrawal option for policyholders. While the rules of borrowing may be different for different insurance providers, generally you may borrow up to 90% of your policy’s cash value. This may help you meet your immediate cash requirements without losing out on the policy’s coverage and death benefits.


Wrapping it up


You can calculate the cash surrender value of your policy within seconds with the help of an online life insurance payout calculator. However, by surrendering your policy, you do stand to lose out on sizable benefits since the amount you receive will be lower than the premiums you’ve already paid. Thus, in such cases, looking into alternatives like loans against policy depending on the rules of borrowing of the insurers or partial withdrawals in case of ULIPs may be more prudent options than simple terminations.


Bajaj Allianz Life Videos


Bajaj Allianz Life | Children's Day

Contact Us

Bajaj Allianz Life Insurance Company Ltd.

Bajaj Allianz House, Airport Road, Yerawada, Pune - 411 006, Maharashtra

Tel No: 020-66026773

Fax No: 020-66026789

Branch Visit Timings:

Monday to Friday - 9:00 AM to 3:30 PM

Saturday - 9:00 AM to 1:00 PM

Customer Care Helpline:


Monday to Sunday: 9:00 AM to 7:00 PM (IST)

NRI Services Helpline

24/7 (All week days)

Sales Enquiry Helpline:


Monday to Saturday: 9:00 AM to 7:00 PM (IST)

For NRI: +91-20-35125850 (Call charges apply)

Monday to Saturday: 9:00 AM to 7:00 PM (IST)

Find Us Online

##Our policy covers COVID 19 claims subject to policy terms and conditions being met

3Discount is available for regular premium and limited premium payment frequency under all variants of this product.

2Above illustration is considering Male aged 25 years | Non-Smoker | Life Cover Variant | Policy term (PT)– 30 years | Premium Payment Term (PPT) – 30 years | Sum Assured opted is Rs. 1,00,00,000 | Online Channel | medical rates | Annual Premium Payment Mode | Premium shown above is exclusive of Goods & Service Tax/any other applicable tax levied, subject to changes in tax laws, and any extra premium and is for illustrative purpose only.

~Tax benefits as per prevailing Income tax laws shall apply. Please check with your tax consultant for eligibility.

The above information is for general understanding and is meant to educate the general public at large. The reader will have to verify the facts, law and content with the prevailing tax statutes and seek appropriate professional advice before acting on the basis of the above information. 

The views stated in this article is not to be construed as investment advice and readers are suggested to seek independent financial advice before making any investment decisions. For more details on risk factors, terms and conditions please read sales brochure & policy document (available on carefully before concluding a sale.