There could be many reasons to surrender a policy before its maturity.
Things to consider before surrender of policy
Once surrendered the policy can never be reinstated. You’ll have to re apply. The policy may no longer be available on sale. Medical tests may be required. The policy premiums would now be revised and with increase in age, the premium increases drastically.
A policy can be left without paying the premiums. The policy will automatically be converted to paid up status. Wherein the policy Holder will get the insurance cover of a smaller amount.
You can revive a policy within 2 years of last payment. So if you have any sort of financial crunch at the moment, don’t pay this year. You can revive the policy when you have cash and still be able to get all the benefits of the existing policy.
How to surrender