Question

What happens if you surrender a Variable life insurance policy?

a) You receive the full cash value of the policy.
b) You pay a surrender charge and receive the remaining cash value.
c) You can convert it to a fixed life insurance policy.
d) Surrendering is not allowed for Variable life insurance.

Answer 1

If you surrender a Variable life insurance policy, you will receive the remaining cash value after paying a surrender charge.

Step-by-step explanation:

If you surrender a Variable life insurance policy, you will receive the remaining cash value after paying a surrender charge. This means that option b) is the correct answer. Variable life insurance policies have a cash value component that accumulates over time, similar to whole life insurance policies. However, the cash value is not guaranteed and is tied to investment performance. When surrendering a Variable life insurance policy, you will receive the remaining cash value as the surrender value, after deducting any surrender charges as specified in the policy.