📢 Too many exams? Don’t know which one suits you best? Book Your Free Expert 👉 call Now!

    ⚡ Month End Offer - Flat 52% Off On All Courses! Enroll Now ⚡
    00:00:00 AM Left

    Question

    What does the term "Surrender Value" signify in the

    context of insurance policies?
    A The sum assured by the insurance company upon the policyholder's demise. Correct Answer Incorrect Answer
    B A refund of premiums to policyholders who have maintained their policies for the entire duration. Correct Answer Incorrect Answer
    C An amount paid to policyholders who wish to terminate their policy prematurely, subject to a calculated reduction. Correct Answer Incorrect Answer
    D Additional compensation provided to policyholders who opt for a partial withdrawal from their policy's accumulated funds. Correct Answer Incorrect Answer
    E None of the above Correct Answer Incorrect Answer

    Solution

    Explanation: Surrender Value pertains to the sum paid to policyholders who opt to terminate their insurance policy before its designated maturity date. However, this payout is not the full premium paid; it undergoes a calculated reduction that considers factors such as the policy's duration and the premiums paid. This complex concept reflects the intricate dynamics of policy termination and its financial implications.

    Practice Next
    More Accounts Questions

    Relevant for Exams:

    ask-question