In case the surrender request is received before completion of first five policy years, the fund value after deduction
of applicable surrender charges, if any
Policy Termination or Surrender Benefit: on surrender, the balance in the policy account net
of applicable surrender charges and Market Value Adjustment is returned
The difference between the cash and the surrender value is that if you surrender your policy (for example, if you choose to cancel and cash out the life insurance policy), you will receive the cash value that has accumulated less
any applicable surrender charges; these charges are pre-determined by the life insurance company, and are stipulated in your policy contract.
If
the applicable surrender charge rate is 2 %, then Kelli's charges would be:
If Wife dies first, the accumulated value of the policy, minus
applicable surrender charges and Market Value Adjustment, would be paid to the remaining beneficiary, Husband.
At the beginning of the index term that follows the end of the Marketing Value Adjustment (MVA) period, the annuity fund value is assured to reach the guaranteed minimum accumulation value, which is 105 %, 107 % and 110 % of original premium (net of withdrawals and
applicable surrender charges) for the ISA 5, ISA 7 and ISA 10 respectively.
You may also see the interest rate quoted for the annuity and
any applicable surrender charges.
The difference between the cash and the surrender value is that if you surrender your policy (for example, if you choose to cancel and cash out the life insurance policy), you will receive the cash value that has accumulated less
any applicable surrender charges; these charges are pre-determined by the life insurance company, and are stipulated in your policy contract.
If Wife dies first, the accumulated value of the policy, minus
applicable surrender charges and Market Value Adjustment, would be paid to the remaining beneficiary, Husband.
Accumulation Value In adjustable, equity indexed, variable universal and universal life policies, the accumulation value is equal to the policy's cash value before the deduction of
any applicable surrender charges when determining the policy's net surrender vale.
Surrender Value In most policies, the surrender value is typically the cash accumulated value less
any applicable surrender charges.
The determination of the cash value, both the base amount and
the applicable surrender charge, in the contract can be explicit by determining the value for each surrender date (guaranteed cash values), by referring to the value of specific investments or subject to the discretion of the insurance company, which is often executed to bring cash values in line with values of the investments of the insurance company.
The net cash surrender value refers to the cash value of the deferred annuity during the accumulation phase, less
any applicable surrender charges.
In adjustable, equity indexed, variable universal and universal life policies, the accumulation value is equal to the policy's cash value before the deduction of
any applicable surrender charges when determining the policy's net surrender vale.
In most policies, the surrender value is typically the cash accumulated value less
any applicable surrender charges.
In case of a Unit Linked Life Insurance Policy, if the policyholder chooses to withdraw the policy completely, before the completion of 5 years, then the Fund Value after deducting
the applicable surrender charges are transferred to the Discontinued Policy Fund.
Surrender / Discontinuance Charge:
The applicable surrender charges depending upon the year of surrender and are applicable if the policy is discontinued in first 4 policy years.
Guaranteed Cash Value This is determined based on
the applicable surrender charge of the policy and its base amount.
If the discontinuation of the policy is within first five years of inception,
applicable surrender charges are levied for early surrender.
In case, you apply to surrender the policy within the first 5 policy years, the fund value will be payable after deducting
the applicable surrender charges.
If this Policy is surrendered during the Lock in Period, the Fund Value to the Pension Discontinuance Policy Fund is credited after deducting
the applicable Surrender Charges.