The surrender value of an insurance policy is
A)its promised payoff.
B)normally a portion of the contract's face value.
C)its value upon bankruptcy.
D)the value of the junk bonds in the insurance company's portfolio.
E)its holdup value.

Question

Quizplus · Accepted Answer

The surrender value of an insurance policy is the amount of money that the insurance company will pay to the policyholder if they choose to surrender or cancel their policy before the end of the term. It is typically a portion of the contract's face value, as there may be fees and charges deducted from the original amount.

The Surrender Value of an Insurance Policy Is