When is a policy said to be withdrawn?

A. On surrender of the policy in return for surrender value

B. When the premiums are not paid as and when due

C. When a policy is upgraded

D. When a policy is downgraded

Answer: Option A

Solution(By Examveda Team)

A policy is said to be withdrawn on surrender of the policy in return for surrender value.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.