Check the policy’s surrender value formula in the contract
Determine the total premiums paid
Subtract any applicable charges, fees, or penalties
Add any guaranteed cash value or accumulated savings
Add any vested bonuses, if applicable
Deduct outstanding policy loans and interest
Deduct unpaid premiums or other dues
Apply the surrender value factor, if specified
Use the insurer’s current surrender value statement for the exact amount
For unit-linked policies, calculate based on fund value minus surrender charges
For traditional policies, calculate based on paid-up value and surrender factors
Verify the result with the insurer before surrendering the policy