| Policy year | Premiums paid so far | Surrender value | Gain or loss |
|---|---|---|---|
| Year 1 | S$5,000 | S$1,500 | Loss of S$3,500 |
| Year 2 | S$10,000 | S$6,800 | Loss of S$3,200 |
| Year 3 | S$15,000 | S$11,900 | Loss of S$3,100 |
| 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 9 | S$45,000 | S$45,600 | Gain of S$600 |
| Maturity | S$50,000 | S$54,000 | Gain of S$4,000 |
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Endowment surrender value explained
An endowment's surrender value is what your insurer pays if you end the policy before maturity. It starts low, grows through the term, and only reaches the full maturity value at the end. Here is what it is made of and why.
Last reviewed 15 October 2026
What an endowment's surrender value is made of
Your insurer's statement may show these separately or as one figure.
Guaranteed cash value
Set out in the policy year by year. It is the part that cannot change.
Bonuses already added
Reversionary bonuses, once declared, are added to the policy. Before maturity they are worth less in cash than their face amount.
Terminal or special bonus
Not guaranteed. Some insurers pay part of it on surrender, some pay none, and the rate can change.
Less what you owe
Any policy loan, its interest and premiums owing are taken off. What is left is your net surrender value.
How it grows over the term
A 10-year endowment with S$5,000 paid each year. Surrender value trails the premiums paid for most of the term and passes them only near the end.
Illustration only. Not any real plan; your benefit illustration shows your own figures.
Why it starts low
The same reasons apply to most participating endowments.
Costs are paid up front
Distribution and set-up costs fall in the first years and are recovered from the policy over its term.
Bonuses build slowly
Each year's bonus adds to the last. Most of the growth comes in the second half of the term.
Leaving early has a price
The insurer invests for the full term. Its surrender values are set so that people who leave early don't cost those who stay.
Surrender, maturity and resale value
Three different numbers for the same policy.
| Surrender value | Maturity value | Resale value | |
|---|---|---|---|
| What it is | What the insurer pays to end the policy early | What the insurer pays at the end of the term | What a buyer pays to take over the policy |
| Who pays | Your insurer | Your insurer | A buyer, such as us |
| When | Any time before maturity | On the maturity date | Any time, if a buyer will take it |
| What happens to the policy | It ends | It ends, fully paid out | It continues under the buyer |
What decides resale value · Work out your net surrender value
Endowment value questions
Why is my surrender value lower than the bonuses on my statement?
Bonuses shown on a statement are usually payable at maturity or on death. Paid in cash today, they are worth less.
Can my surrender value go down?
The guaranteed part doesn't. Non-guaranteed parts, such as any terminal bonus paid on surrender, can change when the insurer revises its bonus rates.
Where do I find the surrender value for each year?
In the benefit illustration you received when you bought the policy. It shows values at two illustrated rates of return; only the guaranteed column is certain.
When does surrender value pass the premiums paid?
It depends on the plan. For many endowments it is late in the term. Your benefit illustration shows the year.
See if a buyer would pay more
For an eligible endowment, our written offer sits beside your net surrender value. No NRIC, no obligation.