Insurance Awareness - Life Insurance - LIC
In an endowment insurance policy, what happens if the policyholder surrenders the policy before maturity?
In an endowment insurance policy, what happens if the policyholder surrenders the policy before maturity?
easy Q3 of 15
Step-by-Step Solution
Step 1: Understand surrender value in endowment policies
If the policyholder surrenders the policy before maturity, they receive a surrender value which is a portion of the premiums paid, subject to insurer's terms and conditions.Final Answer:
The policyholder receives the surrender value as per the insurer's terms → Option BQuick Check:
Policyholder receives the surrender = correct answer ✅
Quick Trick: Surrender value is a partial refund before maturity, not full sum assured.
Common Mistakes:
MISTAKES- Assuming full sum assured is paid on surrender or no amount is paid.
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