Why are more Indians surrendering their life insurance policies early?

More Indians are surrendering their life insurance policies before maturity — and many could be getting back significantly less than they paid. Life insurance surrender and withdrawal payouts surged from ₹1.58 trillion in FY22 to ₹2.80 trillion in FY26, with experts pointing to financial pressures, mis-selling, changing needs and limited understanding of policy terms. But does surrendering early make financial sense? And what alternatives do policyholders have? Watch this explainer to understand the risks of early surrender and what you should check before exiting a policy.