UK: 1. The act of terminating an existing life insurance (whole life or endowment) and receiving the current surrender value in cash. 2. A pensions term to describe allocation (the giving up of part of a pension in return for a pension payable to the member’s spouse or dependants) or commutation.
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The giving up of an insurance policy by the insured to the insurer before the insurance has run its full course.
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To terminate or cancel a life insurance policy before the maturity date. In the case of a cash value policy, the policyholder may exercise one of the non-forfeiture options at the time of surrender.