'Three years ago, we were getting 80-100% over
surrender values,' he says.
The actual cancellation of the contract shall take place after 30 days from receipt by the buyer of the notice of cancellation or the demand for the notarial act of rescission and upon full payment of the cash
surrender value to the buyer.
Producers and clients believe that the cash
surrender value of a life insurance policy is approximately equal to its interpolated terminal reserve (ITR, explained later), and that the ITR is the policy's FMV.
There are two types of surrender value--guaranteed
surrender value and special/cash
surrender value.
Summary: Evaluate the
surrender value of your endowment policy before you discontinue it.
NONFORFEITURE VALUE also called cash
surrender value, is the sum of money an insurance company will pay a policyholder if he or she decides to cancel the policy before it expires or before he or she dies.
The bill also requires that insurers must provide a notice that premium is due not more than 30 days from the date the insurer determines that the net cash
surrender value under the policy is insufficient to pay the total charges that are necessary to keep the policy in force.