Question

What is payable to the policyowner if a whole life policy is surrendered prior to its maturity date?

Answer 1

The cash value is payable to the policyowner if a whole life policy is surrendered prior to its maturity date.

The cash value:

• The amount of money that accumulates inside a cash-value-generating annuity or permanent life insurance policy is known as cash value, sometimes known as account value. It's the cash that's in your account.
• The percentage of your policy's cash value that pays interest is what you may take or borrow from in an emergency.
• When your premiums are divided into three pools—one for the death benefit, one for the insurer's expenses, and one for the cash value—cash value accumulates in your permanent life insurance policy.
• Cash may not always be worth its face value in extraordinary situations. If the firm has a cash surplus of a reasonable size while evaluating the company or its shares, it is advised to evaluate the business first and then add the cash surplus at face value to determine the overall value of the company.

Learn more about the cash value here brainly.com/question/4099983

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