The amount paid by the insurance company to the insured upon giving up his policy is called?

Answer Details

The amount paid by an insurance company to the insured when the policy is terminated before its maturity is known as the "surrender value". This value is the amount that the insurance company agrees to pay to the policyholder upon the cancellation or surrender of the insurance policy. The surrender value is calculated based on the amount of premiums paid by the policyholder and the length of time that the policy has been in force. The longer the policy has been in force and the higher the premiums paid, the higher the surrender value will be.