Q314
A policy can be surrendered only if it has acquired
A.
Legal value
B.
Money value
C.
Policy value
D.
Paid-up value
AnswerAnswer: Option D
Solution
Answer: Option D
Solution:
A policy can be surrendered only if it has acquired paid-up value. In case of life insurance, if you surrender a policy before the completion of its full term, you could get back a portion of the money you paid as premium, after deducting charges. This money is surrender value.