The surrender value of a policy is the amount that the
company is prepared to pay at a particular point in time if the
policyholder wishes to cancel the policy.
A Temporary or Term Assurance policy (
IHTM20102) will never have a surrender
value, although it may have a market value.
Life policies are often sold at prices in excess of their
surrender values. The surrender value is therefore not necessarily
the open market value of the policy.
See also
IHTM20211 and definition of claim value
(
IHTM20084).
TG Actuarial Team is responsible for the valuation of life
policies on an open market basis.
