Surrender value and exit options (Rückkaufswert)
Surrender value is the amount an insurer pays when an eligible life or pension policy ends before maturity. Rückkaufswert is not total premiums paid: it can reflect the reserve or current unit value, charged costs, outstanding policy loans, and a valid agreed deduction [1]. Beitragsfreistellung (paid-up status) stops premiums but changes future benefits instead of paying cash.
The exit comparison
Request a same-date statement for each contractual path:
| Path | Cash now | Future benefit | Cover and consequences |
|---|---|---|---|
| Surrender | Rückkaufswert | Contract ends | Attached cover normally ends; tax or deductions may apply |
| Paid-up | Usually none | Reduced paid-up benefit | Some attached cover may reduce or end |
| Reduce or change premium | Usually none | Recalculated benefit | Available only if contract permits |
| Continue | None | Existing projected benefit | Future premiums and costs continue |
EU insurance rules require policy information to indicate surrender and paid-up values and the extent of guarantees [2].
Worked example
A policyholder has paid €12,000 over four years. The insurer quotes a €7,400 surrender value and a reduced paid-up maturity benefit if payments stop.
The €4,600 gap is not enough to choose an exit. Compare cash needs, remaining premiums, guaranteed and non-guaranteed benefits, lost risk cover, future costs, and any tax effect. Sunk premiums explain the history; they do not determine the least costly path from today.
Check yourself
Premiums paid total €12,000 and the quoted surrender value is €7,400. What is the cash gap in euros?
What normally distinguishes paid-up status from surrender?
Why do premiums already paid not determine today's exit choice?
Which items belong in a same-date exit comparison? Select all that apply.
Sources
- Bundesministerium der Justiz — Versicherungsvertragsgesetz, § 169 surrender value, https://www.gesetze-im-internet.de/vvg_2008/__169.html (accessed 2026)
- EIOPA — Solvency II information for policyholders: surrender and paid-up values, https://www.eiopa.europa.eu/rulebook/solvency-ii-single-rulebook/article-2272_en (accessed 2026)
- Verbraucherzentrale — Lebensversicherung kündigen? Exit alternatives and consequences, https://www.verbraucherzentrale.de/wissen/geld-versicherungen/weitere-versicherungen/lebensversicherung-kuendigen-diese-alternativen-sind-oft-besser-12129 (accessed 2026)