Surrender value the amount the policyholder will get from the life insurance company if he decides to exit the policy before maturity. A mid-term surrender would result in the policyholder getting a sum of what has been allocated towards savings and the earnings thereon. From this will be deducted a surrender charge, which varies from policy to policy. As per a recent Insurance and Regulatory Development Authority (IRDA) directive, life insurance companies have been asked not to levy surrender charges if the policyholder chooses to terminate the cover after five years. A regular premium policy acquires surrender value after the policyholder has paid the premiums continuously for three years. If, after paying premiums for three years, you do not wish to continue with the policy, you can convert it into a paid-up one, freezing your investments at that level. However, you need to make sure that you keep track of this policy till it matures.