Insurance Surrender vs Maintain Calculator

Compare keeping versus surrendering an insurance policy after fees, tax drag, future premiums, and stress case.

Insurance surrender vs maintain calculator

Compare Korean insurance surrender value, maturity refund, reinsurance premium, tax-free holding tests, and alternative investment projection.

Net surrender value

₩3,150,000

Current surrender rate

35.0%

Maturity refund value

₩36,720,000

Remaining premium

₩27,000,000

New monthly premium

₩195,000

Recommendation

REDUCE

Uses calculateSurrenderVsMaintain with surrender-rate tables by insurance type and elapsed year, low-refund product adjustment, 15.4% interest-income tax, 10-year tax-free holding tests, and protection-insurance deduction assumptions. This English finance calculator calls the same Korean pure calculation module as the Korean page. KRW amounts, Korean tax rules, insurance terms, statutory limits, and scenario assumptions are preserved instead of the old generic percentage stub.

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Insurance surrender vs maintain guide

This English guide translates the Korean insurance surrender versus maintain calculator. The calculator calls calculateSurrenderVsMaintain and keeps surrender-rate tables, premium period, coverage period, tax-free insurance tests, and replacement premium logic.

Surrender value and refund rate

The model calculates elapsed years from enrollment age to current age, total paid premiums, current surrender value, current surrender rate, loss amount, surrender tax, and net surrender value. Low-refund products are adjusted with the low-refund ratio during the payment period.

Maintaining the policy is not judged only by refund value. The calculation also includes remaining premium, remaining payment years, maturity refund value, maturity refund rate, remaining coverage years, and estimated coverage value.

Replacement and investment alternative

If the policy is surrendered, buying equivalent coverage later can be more expensive. The reinsurance analysis estimates a new monthly premium, premium increase amount, and premium increase rate using age and gender premium multipliers.

The alternative investment simulation compares lump-sum investment of the surrender value with regular investment of avoided premiums. It reports final value, after-tax profit, yearly projections, and break-even year versus keeping the policy.

Tax-free holding and deduction rules

The Korean constants preserve 15.4% interest-income tax, a 10-year tax-free holding-period test, a KRW 1.5 million monthly premium tax-free limit, and a KRW 100 million lump-sum premium limit.

Protection-insurance tax deduction logic is also preserved with the annual KRW 1 million deduction limit and 12% deduction rate. The final recommendation can be surrender, maintain, reduce, or mixed depending on refund loss, remaining coverage, replacement cost, and investment opportunity.

Korea-specific assumptions

Insurance contracts differ by insurer, rider, payment status, renewal clause, tax-free eligibility, and surrender-charge schedule. Use the result as a Korean policy review aid, not as a cancellation instruction.