2801. What is a policy withdrawal?

Discontinuation of premium payment by policyholder
Surrender of policy in return for acquired surrender value
Policy upgrade
Policy downgrade
✅ The correct answer is B.
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.

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