How to cash out an insurance policy in Singapore

There are six ways to get cash from a policy with a cash value. Some end the policy, some keep it going, and they don't all pay the same. Here they are, with what each costs you.

Last reviewed 15 October 2026. General information, not financial advice.

Does your policy have cash in it?

Only policies that build a cash value can be cashed out. Your policy schedule or insurer's app will show it.

Usually yes

Endowment

Builds a surrender value and pays out at maturity. Many pay yearly cash benefits too.

Usually yes

Whole life

Participating whole life plans build a cash value over many years.

Yes, a fund value

Investment-linked

The value of your units, which rises and falls with the funds. Charges may apply.

Term, hospital, accident

Protection only. There is no cash value to take out.

Six ways to get cash

Rules differ by plan. Your insurer confirms what yours allows.

Way	What you get	Policy continues?	Good to know	Our guide
Withdraw cash benefits	Yearly cash benefits you left with the insurer, plus any interest added	Yes	Only for plans that pay cash benefits. Leaving them in earns interest that isn't guaranteed.	Glossary
Policy loan	A loan up to a limit set by your insurer	Yes	Interest is charged. If the loan and interest grow past the cash value, the policy can end.	Loan or surrender
Partial withdrawal	Part of the cash value	Yes, reduced	Not every plan allows it. The cover and future payouts fall for good.	Your choices
Sell the policy	A price agreed with a buyer	Yes, but not for you	May fetch more than surrender value for an eligible endowment or whole life policy. The buyer pays future premiums.	Selling
Surrender	The net surrender value	No	Open to every policy with a cash value. Usually not reversible.	How to surrender
Wait for maturity	The maturity value, with bonuses	It ends, fully paid out	Usually the most money, if you can wait and keep paying.	How value grows

Before you cash out

Four checks that protect you whichever way you choose.

Get the figures in writing
A dated statement of surrender value, loan balance and maturity value. Work out your net value
Think about the cover
Surrender and sale both end it for you. If someone relies on it, arrange other cover first.
Compare at least two numbers
For an eligible policy, compare a written offer with your net surrender value and take the higher.
Watch for scams
No genuine insurer or buyer asks you to pay a fee to release your money. Policy scams to know

Cashing out: questions

Which way pays the most?

Usually waiting for maturity. Of the ways that pay now, compare a sale with surrender for an eligible policy; a loan gives less cash but keeps the policy.

How long does each take?

Each insurer sets its own processing times for loans, withdrawals and surrenders, and a sale needs the insurer to record the new owner. Ask before you apply.

Can I cash out an investment-linked plan?

Yes, through your insurer, by withdrawing or surrendering units. We don't buy investment-linked plans at present.

Can I get cash from a policy that has lapsed?

If it had a cash value, your insurer may pay what is left, or let you reinstate it. Ask your insurer what applies.

See what selling would pay

If we would buy your policy, our written offer sits beside your net surrender value. No NRIC, no obligation.

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