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Definition of Guaranteed Surrender Value, Guaranteed Surrender Value Meaning - The Economic Times. Surrender value is the sum of money an insurance company will pay to the policyholder or annuity holder in the event of his policy being. Guaranteed surrender value is mentioned in the brochure and is payable after the completion of 3 years. If you own a traditional bundled insurance policy, you need to know that these plans come with heavy penalties if you decide to leave midway. After the insurance regulator forced the industry to cut expenses on.