Existing Policy FAQ's
What is a policy surrender value?
If you have a Whole of Life or Endowment policy, you may surrender (cancel) your policy before its maturity date (at 95 years of age for Whole of Life policies or a specified date for Endowment policies).
The surrender value is a cash value determined by Foundation Life that you can receive after deducting outstanding premiums and debt. The surrender value is lower than the total death benefit of a policy and can be amended by Foundation Life at any time.
How are surrender values calculated?
Surrender values are determined, taking into account the total assets available in the Participating Fund and your policy details, such as, the age and gender of the life insured, the premium you pay, your sum insured, reversionary bonuses, and the remaining time until your policy matures.
Why has Foundation Life changed my surrender value?
Surrender values are reviewed and updated to better reflect current Participating Fund asset values. The methodology considers the present value of a policy’s future benefits less premiums still to be paid. It is augmented by a share of the present value of future expenses and taxes. The methodology also considers total premiums paid. Reviewing surrender values improves equity for policyholders in the Participating Fund. The administrative expenses for Foundation Life have remained relatively stable in recent years; however, as we are a closed book of business, the pool of policies over which these expenses are distributed has decreased. By adjusting surrender values, we aim to ensure that policyholders who decide to keep their policies do not face an unfair burden of future expenses. Our actuaries conducted a thorough analysis of our surrender values and identified that the returns allocated to our continuing policyholders will be adversely affected if surrender values for those who choose to surrender their policies before maturity are not adjusted. By adjusting surrender values, Foundation Life ensures that the amounts allocated to policyholders reflect the current asset values and spread future expenses fairly across policyholders. This ensures that policyholders who choose to retain their policies are not adversely impacted by the amounts distributed to policyholders who choose to surrender their policies.
Can you tell me how much my surrender value has changed by?
You can email our team at
When was the last change made to surrender values?
The most recent adjustment to surrender values was conducted as at 31 March 2024.
How often will surrender values change?
Surrender values will be reviewed regularly by Foundation Life. An example of where surrender values may change is when a significant change in interest rates impacts the value of the Participating Fund assets.
Will the change in surrender value impact the value I get under the proposed policy restructure?
No. Cash values are impacted by the 10-year bond rate at Effective Date, the take-up rate of the replacement life insurance product, and any debt the policy has.
Will this impact the premiums that I pay?
No. Your premium payments will not be impacted by the change in surrender value of your policy.
Will my death benefit change?
No. The change in surrender values will not impact your current death benefit.
By adjusting surrender values Foundation Life are ensuring that policyholders who choose to retain their policy until maturity or death are not adversely impacted by policyholders who have chosen to surrender their policy.