The policy can only be surrendered once it acquires a Guaranteed Surrender Value (GSV) .i.e., on payment of first two full year’s premium.

The surrender value will be equal to the higher of Guaranteed Surrender Value (GSV) or Special Surrender Value (SSV). 

The GSV is defined as:-

GSV factor X (Total premiums paid for base policy excluding extra premium (if any))

Total premiums paid for base policy refers to the total Annualised premium paid under the policy.
 

In practice, an SSV will be paid to the policyholder which will always be higher than or equal to the GSV.
 

The policy gets terminated after payment of surrender benefit.

The SSV factors can be changed by the Company with prior approval of the IRDAI basis changing demographic experience.
 

The GSV factors for the base policy are as follows:

Once the policy has acquired a surrender value, in case of non-payment of due premiums till the expiry of the grace period, the policy will not lapse but will become Reduced Paid Up (RPU). The policy will continue with reduced benefits as below:-

RPU Guaranteed Sum Assured at Maturity = ((Total premiums paid for base policy less extra premium (if any)) / (Total premiums payable under base policy less extra premium (if any))) X Guaranteed Sum Assured at Maturity.

RPU Death Benefit = ((Total premiums paid for base policy less extra premium (if any)) / (Total premiums payable under base policy less extra premium (if any))) X Death Benefit

The death benefit and maturity benefit for a policy in RPU mode will be as follows:

 - Death Benefit for a RPU Policy: RPU Death Benefit will be paid immediately on death of life insured during the term of the policy in RPU status

 - Maturity Benefit for a RPU Policy: RPU Guaranteed Sum Assured at Maturity shall be payable on the maturity date.