Multiple choice

A policy can be surrendered only if it has acquired

  1. legal value

  2. money value

  3. policy value

  4. paid-up value

Reveal answer Fill a bubble to check yourself
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.