Life Insurance Surrender Value Calculator
How to use
Option 1: Rate-Based Calculator
- Open Policy Documents: Locate your life insurance policy contract or the quotation provided by your financial advisor.
- Find Surrender Value Table: Navigate to the table showing guaranteed and non-guaranteed surrender values (do not use the death benefit table).
- Input Data: Enter the following from your policy documents:
- Guaranteed returns into the Guaranteed Returns field.
- Illustrated non-guaranteed returns at 3% and 4.25% into their respective fields.
- Select Desired Return Rate: Use the slider to choose a rate between 3% and 4.25%. This should reflect your expected annualised returns from the insurer’s participating fund.
- Calculate: Press Calculate to see your estimated cash surrender value at the selected return rate.
Option 2: Year-Based Calculator
- Open Policy Documents: As above, have your policy contract or quotation ready.
- Find Surrender Value Table: Identify the values listed for the key years: 10, 15, 20, 25, 30.
- Input Data:
- Enter surrender values at 3% and 4.25% for each of the 5 benchmark years.
- Select Target Year: Input the year you want to estimate (must be between 10 and 30).
- Calculate: Click Calculate to see interpolated surrender values for your chosen target year.
Understanding the Limits of Our Calculator
Our calculators are designed to give practical estimates of your life insurance surrender values. However, keep in mind:
- Best Within Certain Limits (Rate-Based Calculator):
- Works most accurately between 3% and 4.25%, as insurers provide their projections within this range.
- Results outside this range are less reliable.
- Straight-Line Growth Assumption (Year-Based Calculator):
- Values between benchmark years (10, 15, 20, 25, 30) are interpolated using straight-line growth.
- In reality, cash values may not grow evenly due to market fluctuations or insurer policy adjustments.
- Estimates, Not Guarantees:
- The calculators provide approximations, not exact insurer projections.
- Actual returns may differ due to participating fund performance, bonuses, and economic conditions.
- Accuracy Depends on Your Input:
- Incorrectly entering policy values (e.g., mixing guaranteed with total projected values) will produce inaccurate results.
- Always double-check your figures against your policy documents.
- Policy Specifics May Vary:
- Different insurers use different models. Our calculators are designed to give general estimates, not exact figures.
- Only Within Supported Range:
- Rate-based calculator: Only valid for rates between 3% and 4.25%.
- Year-based calculator: Only valid for years 10–30. Values outside this range are not supported.