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An endowment's break-even year is the first policy year in which its surrender value is at least the total premiums you have paid. Before it, surrendering returns less than you put in. After it, you get back at least what you paid, though not yet what the money could have earned elsewhere.
Last reviewed 15 October 2026
The same illustrative endowment as on our endowment surrender value page. Not any real plan.
| Policy year | Premiums paid so far | Surrender value | Gain or loss on surrender |
|---|---|---|---|
| Year 5 | S$25,000 | S$22,600 | Loss of S$2,400 |
| Year 7 | S$35,000 | S$33,900 | Loss of S$1,100 |
| Year 8 | S$40,000 | S$39,600 | Loss of S$400 |
| Year 9: break-even | S$45,000 | S$45,600 | Gain of S$600 |
| Maturity | S$50,000 | S$54,000 | Gain of S$4,000 |
Getting your premiums back after nine years means the money earned nothing in that time. The real gain comes after break-even.
If the insurer cuts bonus rates, the illustrated break-even year can move later. Guaranteed and non-guaranteed bonuses
Surrendering before break-even locks in a loss. For an eligible policy, a buyer's offer may narrow it. How we value a policy
It depends on the plan. Many reach break-even late in the term. Your benefit illustration shows the year.
If you can, waiting usually reduces the loss. If you can't, compare surrender with a loan, a paid-up policy or a sale. Compare your choices
Yes. The loan and interest come off the surrender value, so break-even comes later. Loans and arrears
See whether a buyer would pay more than your surrender value. No NRIC, no obligation.