What is a policy withdrawal?

A. Discontinuation of premium payment by policyholder

B. Surrender of policy in return for acquired surrender value

C. Policy upgrade

D. Policy downgrade

Answer: Option B

Solution(By Examveda Team)

Policy withdrawal is Surrender of policy in return for acquired surrender value. In case of life insurance, if you surrender a policy before the completion of its full term, you could get back a portion of the money you paid as premium, after deducting charges. This money is surrender value.