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From The Glossary »

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Surrender Value:

The surrender value of a policy is the value that the assurer is prepared to pay out to the policyholder on early termination of the policy contract. Penalties are associated with early termination of the contract, which are designed to encourage the policyholder to honour the terms of the contract until maturity, reduce the amount paid out on early surrender to below the actual intrinsic fund value of the policy. In addition termination of the contract ...
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