This is the amount of money that is refundable to the insured by the insurer in case the former terminates payment of the premium before the insurance contract matures. The policyholder is entitled to an amount less than the total amount of the premiums already paid.

INSURANCE

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Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]

A	Surrender value
B	Cancellation value
C	Sum Insured
D	Cancelled Insurance

Explanation:

Detailed explanation-1: -An insurance premium is the amount of money an individual or business pays for an insurance policy. Insurance premiums are paid for policies that cover healthcare, auto, home, and life insurance. Once earned, the premium is income for the insurance company.

Detailed explanation-2: -Guaranteed Surrender Value: The policy can be surrendered after it has been in force for at least 3 full years. The Guaranteed Surrender value will be equal to 30% of the total amount of premiums paid excluding the premiums for the first year and all the extra premiums and premiums for accident benefit / term rider.

Detailed explanation-3: -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-4: -But there’s one exception: return-of-premium life insurance. Also known as ROP life insurance, this type of coverage reimburses you for the money you paid in premiums if you don’t die during the term.

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