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About this tool
Check an insurer's surrender quote against the guaranteed surrender value floor set by the IRDAI (Insurance Products) Regulations, 2024, and see the paid-up sum assured alongside it.
This tool computes the guaranteed surrender value floor — the least an insurer may legally pay you for cashing in a non-linked life policy — and holds it up against the figure you have actually been quoted. It is for policyholders who have been given a single surrender number with no working shown. The floor comes from Schedule I, clause 4(A)(a) of the IRDAI (Insurance Products) Regulations, 2024, notified 20 March 2024 and in force from 1 April 2024: a minimum of 30% of total premiums paid if you surrender in policy year 2, 35% in year 3, 50% in years 4 to 7 and 90% in the last two policy years, with the surrender value of any subsisting bonus added on top. It also computes the paid-up sum assured — your sum assured cut in the ratio of premiums paid to premiums payable — which is what the policy becomes if you simply stop paying instead of surrendering, and which is almost never shown next to the quote.
Open Life Policy Surrender Value Auditor on AltFTool — it loads instantly in your browser.
Enter the values you already know.
Fine-tune the options to match your scenario.
Read the result and use it in your planning or reporting.
Applies the exact percentages in Schedule I, clause 4(A)(a) — 30%, 35%, 50% and 90% — indexed to the policy year of surrender.
When the quoted figure equals the guaranteed minimum within half a percent, it says so: no special surrender value is being paid.
Computes sum assured multiplied by premiums paid over premiums payable, plus bonuses already attached, as the alternative to surrendering.
Between year 7 and the last two years the regulation fixes no percentage, only a smooth progression to 90%. The tool marks that figure indicative rather than passing it off as a floor.
For a non-single premium policy the guaranteed surrender value is at least 30% of total premiums paid if you surrender during policy year 2, 35% in year 3, 50% in years 4 to 7, and 90% in the last two policy years, under Schedule I, clause 4(A)(a) of the IRDAI (Insurance Products) Regulations, 2024. The surrender value of subsisting bonuses and accrued guaranteed additions is added to that. On a ₹50,000 annual premium surrendered after 5 years, the floor on premiums alone is 50% of ₹2,50,000, which is ₹1,25,000.
Two. A policy other than a single premium one acquires a guaranteed surrender value only after premiums have been paid for at least two consecutive years. Surrender in policy year 1 carries a guaranteed value of nil, and the policy has not acquired paid-up status either.
The sum assured on death is reduced in the ratio of the period for which premiums have been paid to the period for which they were originally payable. A ₹10,00,000 sum assured on a 20-year premium paying term with 5 years paid becomes a paid-up sum assured of ₹10,00,000 × 5 ÷ 20, which is ₹2,50,000, plus any bonuses already attached. No further bonus accrues after the policy becomes paid-up.
It means no special surrender value is being added — you are being paid the statutory minimum and nothing for the fund the policy has actually built. Special surrender value is a separate amount, which the 2024 regulations require to be at least the present value of the paid-up sum assured and accrued benefits, and it is normally higher than the guaranteed floor. The tool flags a match within 0.5% of the floor because insurers round to the rupee.
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