Tool
Life surrender
What do I get if I surrender my life policy early?
Before you sign the surrender form, see what is left of what you paid.
- On an early surrender you get the value of the policy today, less the surrender charge, not what you paid.
- On a unit linked plan with contributions of €4,800, units of €2,880 and a charge of 8%, you get about €2,650, that is 55% of the contributions.
- The key information document (KID) of the product and its terms state the charge.
Calculate
Before you sign the form
Open the KID: its first cost table shows in euros what leaving costs in the first year and halfway through the period. Ask in writing for the surrender value at today's date, the value as a paid-up policy and the loan against the policy. Set the three side by side.
How we work it out
For unit linked, the value today is your units times their price on the valuation day. The surrender charge, a share the policy states, comes off it. The entry costs of the first years do not come off again: they never became units.
On a traditional plan the surrender value of each year is printed in the table of the policy, with the charge inside it, and you type it. We show no typical value, because we found no public document that gives one. We do not work out the tax. How much life cover do I need?
Sources
- Law 2496/1997, the insurance contract, the rights of the policyholder of life insurance, 1997
- Law 4172/2013, Income Tax Code, article 15 par. 4, the payout of group pension policies, 2013
- Regulation (EU) 1286/2014 on the key information documents (KID) of investment products, insurance ones included, 2014
- Unit linked: what it is, what the insurer keeps, when it makes sense, 2026
- Early surrender of a life policy and unit linked: what you lose, 2026
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Frequently asked questions
What people usually ask
01 Why do I get less than I paid?
Because the entry costs are taken mostly in the first two years and never became units or capital. On top of that come the cost of the death cover, the management costs and the surrender charge.
02 Where do I find the surrender charge of my policy?
In the KID, in the first cost table, and in the terms of the policy. Ask the insurer for the scale of the charge in writing, with a statement of the surrender value at today's date.
03 What costs you less than a surrender?
Usually a partial surrender, a paid-up policy, which stops the premiums without ending the contract, and a loan against the policy, where the policy allows it.
04 Is an early surrender taxed?
Article 15 of Law 4172/2013 sets a tax for group pension policies, 10% up to €40,000 and 20% above, raised by 50% on early payment. It does not name an individual unit linked. Ask an accountant before you ask for the money.
05 Do I lose my life cover if I surrender?
Yes. Any cover tied to the policy stops on the day of the surrender. Take out the new cover before you end the old one, not after.