{"id":1151,"date":"2017-03-28T10:37:43","date_gmt":"2017-03-28T08:37:43","guid":{"rendered":"https:\/\/www.namfisa.com.na\/educates\/?post_type=right_responsibility&p=1151"},"modified":"2025-07-19T14:45:44","modified_gmt":"2025-07-19T12:45:44","slug":"public-notice-effects-of-early-withdrawal-or-surrender-of-insurance-investment-plans","status":"publish","type":"post","link":"https:\/\/www.namfisa.com.na\/educates\/public-notice-effects-of-early-withdrawal-or-surrender-of-insurance-investment-plans\/","title":{"rendered":"Public Notice – Effects of Early Withdrawal or Surrender of Insurance Investment Plans"},"content":{"rendered":"\t\t
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Introduction<\/h3><\/span><\/div>
In tough economic times, people are sometimes left scrambling for cash to meet everyday expenses and lifestyle demands. Your insurance investments are a possible source of funds to meet your financial needs.\n<\/div><\/div>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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Friendly Reminder:<\/h3><\/span><\/div>
\nYou may either opt for early withdrawal or surrender. Surrendering an insurance policy means exiting from the insurance policy before the maturity. It is the voluntary termination of the insurance contract by the policyholder.\n

\nIt is however important to remember the purpose of insurance investments. The most relevant ones are:\n

\n\u2022 Long-term savings for retirement \u2013 financial consequences of a longer-than-expected life (longevity).
\n\u2022 Protection against financial consequences of early death, disability.\n

\nWhat does it mean to surrender an insurance policy or cash in your insurance investment before they mature?\n

\nThere are certainly some consequences to using insurance investment plans to meet immediate cash needs, especially if you\u2019re compromising your long-term goals or your family\u2019s financial future.\n

\nHere is what you must consider before deciding to prematurely terminate or surrender your insurance investment plans:\n

\n\u2022 Surrender charges;
\n\u2022 Inability to obtain coverage or the same amount of coverage at the same price;
\n\u2022 Loss of guaranteed interest rate;
\n\u2022 Loss of additional savings benefits as opportunity costs of surrender.\n

\nIf you are in doubt or need more information about the risks or consequences of early withdrawal or cancellation, please contact your Financial Advisor or NAMFISA.\n

\nNAMFISA Compblaints Department: (061) 290 5000 (main) or 290 5133 (Ms Marina K. Ishidhimba) or 290 5207 (Ms Hilka Alberto), Fax: (061) 290 5122; for online complaints email complaints@namfisa.com.na<\/a>; visit www.namfisa.com.na<\/a> or visit us on the: 6th Floor, Alexander Forbes House, 154 Independence Avenue, Windhoek.<\/b>\n

\n* NAMFISA treats all information obtained from the public with confidentiality.\n

\nIssued by:

\nPhillip N. Shiimi
\nREGISTRAR: LONG- AND SHORT-TERM INSURANCE\n

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Summary<\/h3><\/span><\/div>
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Surrendering Your Insurance Policy: What You Need to Know<\/h3><\/span><\/div>
In tough economic times, people may turn to their insurance investments for quick cash by withdrawing early or surrendering their policy. However, surrendering a policy \u2014 ending it before maturity to access its cash value \u2014 can have serious long-term consequences that must be carefully considered<\/div><\/div>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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Why Do People Surrender Their Policies?<\/h5><\/div>
People may consider surrendering their policies to:<\/div><\/div>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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  • <\/span>Access immediate funds for living expenses or debt repayment<\/li>
  • <\/span>Cope with a financial emergency<\/li>
  • <\/span>Reallocate funds to another investment<\/li><\/ul><\/div>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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    <\/h5><\/div>
    While these reasons may seem valid in the short term, surrendering your policy could compromise your long-term financial goals and your family\u2019s financial security.<\/div><\/div>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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    Key Purposes of Insurance Investments<\/h5><\/div>
    Before surrendering your policy, it\u2019s important to remember why you took it out in the first place. Common goals include:<\/div><\/div>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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    • <\/span>Long-term savings for retirement \u2013 To protect against the financial impact of a longer life (longevity risk)<\/li>
    • <\/span>Financial protection for your family \u2013 Against the consequences of early death, disability, or serious illness<\/li><\/ul><\/div>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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      Things to Consider Before Surrendering Your Policy<\/h5><\/div>
      Premature withdrawal or surrender of your policy may result in:<\/div><\/div>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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      • <\/span>Surrender charges: These are fees deducted from your payout if the policy is ended early.<\/li>
      • <\/span>Loss of insurance coverage: If you choose to take out a similar policy later, you may not qualify due to age or health status.<\/li>
      • <\/span>Forfeiture of guaranteed interest or returns: Most policies offer guaranteed benefits if held to maturity. <\/li>
      • <\/span>Loss of accumulated savings: Surrendering interrupts the growth of your savings and creates opportunity costs.<\/li><\/ul><\/div>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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        <\/h5><\/div>
        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.<\/div><\/div>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"

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