When the insured exists from an insurance policy before its maturity, the insurance company may choose to pay a specific sum to the insured as per the terms of the policy, which is called as the surrender value of life insurance policy. There may be situations where the insured wishes to terminate the policy due to various reasons such as financial crunch, plans of investment with other policies, etc. Every insurance policy comes with a fixed tenure, during which the insured needs to pay the premium on a regular basis, as per the terms and conditions of the policy.
