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

To avoid losing protection cover, explore the option of taking a loan against it

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 the rules carefully, so that they are able to