A policy can be surrendered only if it has acquired
-
legal value
-
money value
-
policy value
-
paid-up value
D
Correct answer
Explanation
Paid-up value is the reduced amount of sum assured paid by the insurer in case of discontinuation of the payment of premiums after paying the full premiums for the first three years. Surrender value is a percentage of paid-up value. Hence, a policy can be surrendered only if it has acquired paid up value.