Monday, March 16, 2009

How will the surrender value be calculated after specified major surgical benefit is paid?

If specified major surgical benefit is paid, it will affect the basic surrender value of the policy from which it is paid. The subsequent surrender value of the policy will be reduced proportionate to the outstanding endowment benefit advanced. Suppose the benefit consists of an accelerated payment of 50% of the basic sum assured, then the subsequent surrender value will be 50% of the basic surrender value had no specified major surgical benefit been paid.
The surrender value of accrued bonuses will not be affected by the payment of the specified major surgical benefit.
The total surrender value of the policy would be the reduced basic surrender value of the policy plus the surrender value of the accrued bonuses.

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