What is the term used for the amount payable to Mr. Thomas if he chooses to discontinue with the contract?

Mr. Thomas assured his life for the sum of N300,000.00 for a period of 20 years. The premium payable being N2,200.00 monthly.due to loss of employment, Thomas was not able to pay the premium in the last 3 months.

A. premium return
B. reinstatement return
C. terminal claim
D. surrender value

Correct Answer: Option D

D. surrender value

Explanation

‘Surrender Value‘: It is the amount the policyholder will get from the life insurance company if he decides to exit the policy before maturity.

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