Public Notice – Effects of Early Withdrawal or Surrender of Insurance Investment Plans

Surrendering Your Insurance Policy: What You Need to Know

In challenging economic times, many individuals face financial strain and may look to their existing assets — including insurance investments — to meet urgent needs. One potential option is to access funds through an early withdrawal or policy surrender. But before making such a decision, it’s important to understand what this entails and the potential long-term consequences.

To surrender an insurance policy means to voluntarily terminate your contract before it reaches its maturity date. By doing so, you may access the accumulated cash value of the policy — but this comes with several implications.
Why Do People Surrender Their Policies?
People may consider surrendering their policies to:
While these reasons may seem valid in the short term, surrendering your policy could compromise your long-term financial goals and your family’s financial security.
Key Purposes of Insurance Investments
Before surrendering your policy, it’s important to remember why you took it out in the first place. Common goals include:
Things to Consider Before Surrendering Your Policy
Premature withdrawal or surrender of your policy may result in:
Before making a final decision, speak to your Financial Advisor or contact NAMFISA for more information about the risks involved in cancelling or cashing out your insurance investment.
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