Q195
Surrender value is a percentage of
A.
Investment value excluding interest
B.
Loan value
C.
Paid-up value
AnswerD.
Capital invested
Answer: Option C
Solution
Answer: Option C
Solution:
Surrender value is a percentage of paid-up value of the insurance policy. If a policyholder decides to terminate the policy before maturity, the amount which the insurance company will pay to the policyholder is known as surrender value.