Vidyalelo
Commerce · Q441

Insurance

Graduate and Post Graduate · Commerce · question 441

Q441

What is a policy withdrawal?

A.
Discontinuation of premium payment by policyholder
B.
Surrender of policy in return for acquired surrender value
Answer
C.
Policy upgrade
D.
Policy downgrade

Answer: Option B

Solution

Answer: Option B
Solution:
Policy withdrawal is Surrender of policy in return for acquired surrender 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.