GENERAL KNOWLEDGE

Detailed explanation-1: -A paid-up value is the value of your sum assured after you stop paying your premiums. The sum assured decided at the start of the policy is reduced if you do not pay all the premiums. This reduced sum assured is known as Paid-up Value.

Detailed explanation-2: -A policyholder can terminate the life insurance before it reaches maturity by surrendering the policy to the insurance company. Once this is done, the insurer pays a cash value known as the policy’s surrender value.

Detailed explanation-3: -Under the guaranteed surrender value, the policyholder can surrender their policy only after the completion of 3 years. This means that the premium has to be paid for a minimum period of 3 years. If you surrender after 3 years, the surrender value will be around 30% of the premiums paid till date.