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Sell or surrender your insurance policy?
Both end your ownership. Surrender gets the insurer's figure; a sale may get more for an eligible policy. Keeping it, borrowing against it or making it paid-up keep the policy alive. Here are all six, side by side.
Six choices compared
Rules differ by plan, so your insurer confirms what yours allows. Not sure which fits? Pick your situation
| Question | Keep paying | Policy loan | Partial withdrawal | Paid-up | Surrender | Sell to us |
|---|---|---|---|---|---|---|
| Cash now | None | Up to the loan limit | Part of the value | None | Net surrender value | Our offer, if we buy |
| Your cover | Continues | Continues | Usually reduced | Continues, reduced | Ends | Ends for you |
| Premiums | You keep paying | You keep paying | Usually continue | Stop | Stop | We pay them |
| Maturity payout | Yours | Yours, less the loan | Reduced | Reduced | Given up | Paid to us |
| Can you undo it? | Yes | Repay the loan | No | Usually not | Usually not | Not once assigned |
| Best when | You can afford it and want the payout | You need cash for a short time and want the cover | You need some cash and the plan allows it | You can't pay premiums but want some cover | No buyer will pay more and you need the cash | It's eligible, you no longer need the cover, and you want more than surrender value |
Three questions to decide
Do you still need the cover?
If yes, keep the policy, borrow against it or make it paid-up. Selling and surrendering both end it for you.
Do you need the cash now?
If not, keeping the policy to maturity often pays the most, because the payout is largest at the end of the term.
Would a buyer pay more than surrender value?
If it is an endowment or whole life policy paid in cash, check before you surrender. If not, surrender through your insurer.
When each makes sense
Selling
The policy is eligible, you no longer need its cover, and our written offer beats your net surrender value.
Surrendering
The policy isn't one a buyer takes, or no offer beats surrender value, and you need the cash. How to surrender
Keeping
You can afford the premiums, you still want the cover, or the policy is close to maturity.
Check before you surrender
We tell you whether we would buy your policy. If not, your insurer's route stays open.