The Surrender Value on a Life Insurance Policy Is Equal

question 24

Multiple Choice

The surrender value on a life insurance policy is equal to the

• A)cash value.
• B)face value.
• C)amount of death protection.
• D)cash value plus surrender dividends less outstanding loans and surrender charges.

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Definitions:

Damaged House

A property that has suffered physical harm affecting its value or functionality, often through natural disasters or accidents.

Bonds

These are fixed-income investment products where an investor loans money to an entity (corporate or governmental) that borrows the funds for a defined period of time at a fixed interest rate.

Debt Instruments

Financial assets that represent a debtor's obligation to repay borrowed money or other forms of credit to the creditor according to stated terms.

Original Issue Discount

The difference between the par (face) value of a bond and the lower price at which it was originally sold, which must be reported as interest income over the life of the bond.