When to Surrender a Insurance Policy? At times you must have felt in many situations to get rid of something that you’ve got and free yourself from it instead of maintaining it. This view might be applicable on your land that you have purchased, car that you are having and even to your insurance policies. Take a look at all the insurance policies that you have and see whether it is being useful in the current situation for your future benefits? If you have invested in such policies, whether that investment is giving you proper returns?
Reasons to Surrender a Policy
If you shift yourself from these investment options to other schemes like mutual fund or PPF – will it give you more returns? Only based on the answers to these 3 above questions you can decide whether to surrender your insurance policy or not.
Why to Surrender an Insurance Policy?
Why are we surrendering a policy? It could be due the reason that the policy might not be suitable for our need or we are facing loss/trouble to pay a huge sum of policy amount or the income is less to meet out the expenses. Only any of these situation forces us to surrender an insurance policy.
Knowingly or unknowingly that you have taken an insurance policy and at the time of surrendering it, five major questions should be raised and find out the answers. Here are those five questions:
If you have decided that it is correct to surrender the policy after answering all the above questions to yourself then where to invest the amount that you’ll be getting through this policy surrender?
Other Situations to Surrender a Policy
Before deciding to surrender a policy, consider reviewing all the above questions to be firm on your decision. When to surrender a insurance policy purely depends on an individual’s choice and decision based on the above factors including personal factors too. However, largely, these are all the common reasons to surrender a policy.