InvestorQ : How do life insurance companies calculate the surrender value of an insurance policy?
Deepali Khupte made post

How do life insurance companies calculate the surrender value of an insurance policy?

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Swapnil Sarang answered.
3 years ago
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The surrender value of a policy is usually a percentage of the policy’s paid-up value.

Insurance companies calculate the surrender value of an insurance policy based on the surrender value factor, which is the ratio between the premiums paid and the period for which premium payments have not been made.

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