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NIA regulated Nepal

Surrender now or hold to maturity — which leaves you better off?

Thinking of walking away from a policy that drains you every year? Before you do, enter its details below — we'll show you in plain numbers whether surrendering and moving the money to a Fixed Deposit leaves you ahead, or worse off than simply holding to maturity.

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Covers endowment plans. Term has no cash value; whole-life & money-back surrender differently — ask your insurer for a statement.
Printed on your policy bond
Check your premium receipt

Don't have your policy to hand?

Your policy is at or past maturity. You should claim the maturity benefit directly from your insurer — do not surrender. Contact your branch or call NIA on 1660-01-56789 (toll-free).

Your numbers

Surrender value today
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FD path total
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Policy maturity value
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This is a projection, not financial advice.

Surrender values use industry-average estimates for your policy type. FD returns assume 8.5% p.a. (NRB avg FY2081/82). Actual figures depend on your specific policy terms — request a surrender statement from your insurer before deciding.

If you decide to surrender: 6-step NIA checklist

  1. Get a surrender statement Visit your insurer's branch and request an official surrender value statement. This confirms the exact amount you will receive.
  2. Fill the Surrender Application Form Available at your insurer's branch or head office. Sign in the presence of a witness where required.
  3. Submit original policy bond Hand in the original policy document. If lost, obtain a "Lost Policy Bond Indemnity" from your insurer first.
  4. Attach valid ID Citizenship certificate + passport-size photo. Some insurers also require a bank account details form for direct transfer.
  5. Wait for processing Once your documents are complete, the insurer processes your surrender payment. You are entitled to a written surrender value statement within 7 days of your request.
  6. Delayed? File a complaint with NIA If your payment is unreasonably delayed, file a complaint at NIA headquarters in Lalitpur — it is free.

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Not sure what to do?

Leave your details and our team will walk through your surrender vs. hold options with you.

🔓 No phone number needed. Everything above is yours to read and compare. The form below is optional — it exists only if you want an insurer to follow up.

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Frequently Asked Questions

About this surrender calculator and policy exit options in Nepal.

When you cancel an endowment, whole-life, or money-back policy before maturity, the insurer pays you the surrender value — the portion of premiums you are entitled to take back after deducting the insurer's costs. Surrender value is zero in the first 2–3 years and grows toward the maturity value as the policy ages. Term insurance has no cash value — there is nothing to surrender.
Nepal's NIA regulations set minimum guaranteed surrender values. For an endowment plan, after Year 3, you are entitled to at least 30% of total premiums paid (excluding the first year), plus any accumulated bonus declared up to that point. The exact figure depends on your specific insurer and plan — always request an official surrender value statement from your insurer's branch before making any decision. The calculator above uses industry-average estimates.
Surrendering is worth considering when: (1) you are well into the second half of the policy term — surrender value is closer to maturity value; (2) an alternative investment (such as a Fixed Deposit) will earn materially more than staying invested in the policy; or (3) you genuinely cannot afford the premiums. In the first 3–5 years, surrendering almost always results in a financial loss — the surrender value is far below total premiums paid. Use the calculator above to run the actual numbers for your situation.
Maturity value is what the insurer pays if you hold the policy to the end of the full term — premiums paid plus all accumulated bonuses declared over the years. Surrender value is the discounted amount you receive if you exit early, and it is always lower than the maturity value. The longer you hold the policy before surrendering, the closer the surrender value gets to the maturity value.
Yes — most endowment and whole-life policies allow you to borrow up to 90% of the current surrender value as a policy loan. The interest rate is set by your insurer and disclosed in your policy bond. This lets you access cash without cancelling the policy. If your cash need is short-term, a policy loan is almost always better than surrendering outright, because it preserves your maturity payout and all accumulated bonuses.
Once you submit a complete set of documents — original policy bond, surrender application form, valid citizenship certificate, and bank account details — your insurer processes the surrender payment. You are also entitled to a written surrender value statement within 7 days of your request. If your payment is unreasonably delayed, you can file a formal complaint with the Nepal Insurance Authority at no cost.
Insurer ko branch maa jaanda aafno sanga lyaunu parcha: (1) original policy bond (original policy document), (2) insurer le deko surrender application form, (3) citizenship certificate copy ra passport-size photo, (4) bank account details form direct transfer ko lagi. Policy bond harayo bhane pahile insurer baata "Lost Policy Bond Indemnity" letter linu parcha. Complete documents submit garepachi insurer le surrender payment process garcha; written surrender value statement chahi request gareko 7 din bhitra paune hak cha.

Before you decide

Surrendering is one option of several, and it is the only one you cannot undo.

Borrow against it instead

If the need is short-term, a policy loan gets you cash while the policy — and every bonus already added to it — stays alive.

What you are owed

Stopping payment is not the same as losing everything, and a surrender value statement is a right rather than a favour.

Never miss the next one

If this started with a missed due date rather than a change of mind, a free reminder is the cheapest fix there is.

Was it the wrong plan?

Many people surrender a savings policy they were sold when what they wanted was cover. The two are priced very differently.

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