What is a partial surrender is allowed in what type policy?

A partial surrender is allowed in certain types of life insurance policies, such as universal life or whole life policies. This option allows the policyholder to withdraw a portion of the cash value of the policy while keeping the policy active.

When a partial surrender is made, the policyholder may receive a certain percentage of the cash value, minus any applicable surrender charges or fees. The remaining cash value and death benefit of the policy will be adjusted accordingly based on the partial surrender amount taken.

It is important to note that taking a partial surrender may reduce the overall value and benefits of the policy in the long run, as the cash value and death benefit will be lower after the withdrawal. Additionally, any outstanding loans or interest on the policy may also be affected by a partial surrender.

Policyholders should carefully consider their financial needs and goals before deciding to make a partial surrender of their life insurance policy. It is recommended to consult with a financial advisor or insurance professional to fully understand the implications of this option.