[Solved] In ULIPs, what does the term 'Surrender Value' refer to? — Ans: The amount payable to the policyholder on voluntary termination of the policy... | Insurance Awareness

Insurance Awareness - Life Insurance - LIC

In ULIPs, what does the term 'Surrender Value' refer to?

AThe sum assured payable on death of the policyholder.

BThe bonus declared by the insurer annually.

CThe total premiums paid till date without any deductions.

DThe amount payable to the policyholder on voluntary termination of the policy after the lock-in period.

Step-by-Step Solution

Step 1: Define surrender value
Surrender value is the amount payable to the policyholder when they voluntarily terminate the ULIP policy after the lock-in period.
Step 2: Analyze options
The amount payable to the policyholder on voluntary termination of the policy after the lock-in period. correctly defines surrender value.
Final Answer:
The amount payable to the policyholder on voluntary termination of the policy after the lock-in period. → Option D
Quick Check:
It excludes sum assured on death, premiums paid, or bonuses.

Quick Trick: Surrender value = payout on policy termination post lock-in.

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In ULIPs, what does the term 'Surrender Value' refer to?