Surrender value is the amount available when an eligible life insurance policy is terminated before maturity at the policyholder's request. It depends on the product, premiums paid, elapsed time, and contractual calculation. It is often lower than total premiums paid, especially early in the contract.
A Nepalese customer considering surrender should ask for a written quotation and compare it with any paid-up value or policy loan option. Surrender generally ends future protection and benefits. Pure term life insurance may have no surrender value, so the term should not be assumed to apply to every life policy.