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    Question

    What is the Surrender Value of an insurance

    policy?
    A The amount the policyholder receives upon policy expiry. Correct Answer Incorrect Answer
    B The premium amount paid by the policyholder. Correct Answer Incorrect Answer
    C An amount paid to the policyholder when they surrender the policy before its full term. Correct Answer Incorrect Answer
    D The interest earned on the policy amount. Correct Answer Incorrect Answer
    E The tax payable on the insurance policy. Correct Answer Incorrect Answer

    Solution

    Explanation: Surrender Value is the amount that a policyholder receives when they choose to surrender their insurance policy before its complete term. It is calculated using a fixed formula by the insurance company.

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