Surrender value of a policy assumes significance especially, when you are looking out for a loan.
Not exact matches
(Note: The non - guaranteed
assumed rates
of returns chosen in the above example are 4 % and 8 % and the mode
of premium payment is Annual.The Cash
Value, Death Benefit, Maturity Benefit will change (reduce) if the customer withdraws money from the
policy (by
surrender of Cash
Value of PUA) in between the
policy term).
If the average return on the collared Index over the next 30 years is equal to the worst rolling 30 - year period since 1920 (which, as noted in the chart, was 6.9 percent), the cash
surrender value IRR at the end
of Year 30 will be 5.56 percent rather than the 6.32 percent that is projected on the
Policy illustration
assuming a 7.5 percent Index return.