There are two ways to calculate the surrender rate:
① Calculated by paid surrender premium. In the insurance contract during the suspension period, the insurer pays the cash value (surrender premium) of the insurance policy according to the agreement: the cash value comes from the reserve of the insurance policy and is accumulated by the insurance premiums paid by the insured over the years. Therefore, the surrender rate is the ratio of the total surrender premium paid to the sum of the initial reserve plus the current net premium. It is an important indicator of enterprise quality.
The calculation formula is as follows: surrender rate = [total surrender premium in this period/(total accumulated reserve at the beginning+total pure premium in this period)] *100%;
② Calculated by insurance amount: the ratio of the insurance amount of the surrender policy in the current year to the total effective insurance amount at the beginning of the year, namely
Surrender rate = (amount insured in the current year/total amount insured at the beginning of the year) * 100%.
The surrender premium refers to the surrender premium paid to the insured according to the insurance clauses when the insured handles the surrender in the long-term life insurance business operated by the Company.
2. Calculation of surrender premium:
If the insured has paid the insurance premium for more than two years when the contract is terminated, the insurer shall return the cash value of the insurance policy within 30 days from the date of receiving the notice of termination of the contract; If the insurance premium has not been paid for two years, the insurer will refund the insurance premium after deducting the handling fee according to the contract.
(1) Normal surrender: if the insured person's household registration has been moved, and the rural insurance system has not been established in the place where he moved, or he died during the payment period, it can be treated as normal surrender. After deducting the management service fee from the insurance premium paid by the individual at the time of surrender, the interest will be returned to the individual or legal heir at the prescribed surrender rate.
(2) Abnormal surrender: In principle, surrender is not allowed under abnormal circumstances. If the individual insists on surrendering the insurance, only the insurance premium paid by the insured individual will be refunded (excluding the management service fee and excluding interest). According to the principle that individuals do not participate in endowment insurance and do not issue collective subsidies, the collective subsidies that have been included in the name of individuals will not be returned and will be included in the fund.