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Joint Life Policy treated as asset.

Accountancy

Surrender value is the amount given by the insurance company to the firm in case he fails to pay the whole premium amount, right. Then why the policy doesn't come to an end. And why it Continues,if the firm can't pay until the death or retirement of a partner.

ALDRIN G

CA Inter

★ 12K+

06-Nov-20 16:59

404

Answers (1)

Surrender value is the value that a policy holder would get in case the policy is surrendered. It represents current valuation of the policy. The policy continues.