Surrender Value

"Davao" wrote

There's only really one way to "calculate" the SV on a WP policy - *ask* the life office!

That's because, effectively, they can calculate it however they wish - within the terms of the policy, of course.

But the policy does not usually specify *exactly* how the SV would be calculated. Do you have the exact wording for this from your Policy Document?

You can't, because the SV depends on the value of the policy itself, which in turn depends on the value of the underlying investments.

The policy provider usually sends you a statement annually telling you how much the policy is worth. The surrender value is usually a little less than this, due to a fiddle known as a market value adjustment.

This is usually part of the same statement which tells you how much of a shortfall to expect at maturity.

Thanks, Tim and Ron. I'll invest in a microscope to read the policy documents.

Arthur

and if you wish to surrender it, get some quotes from the endowment brokers as they may offer a better price.

Daytona

Thanks.