Question

What does the term "Guaranteed Surrender Value" refer to in life insurance contracts?

a.

The sum assured payable upon the death of the policyholder

b.

A fixed amount related to premiums paid, payable if the policy is terminated

c.

An additional benefit payable in the event of death or maturity

d.

The premium amount payable throughout the premium paying period

Posted under IC 92 Actuarial Aspects of Product Development

Answer: (b).A fixed amount related to premiums paid, payable if the policy is terminated Explanation:Guaranteed Surrender Value is a fixed amount related to premiums paid, payable if the policy is terminated before maturity.

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Q. What does the term "Guaranteed Surrender Value" refer to in life insurance contracts?
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