Paid up value vs surrender value?

Question

what is the difference between paid up value and surrender value of an endowment policy

Answer 1

paid up value/paid up policy - the surrender value is used to purchace an amont of coverage to where no further premiums are paid into it.  thus, it becomes a paid up policy.  the insurance company can calculate the paid up value that the policy's value can purchase.

surrender value - the value sent to you in a check upon surrender of the policy.  this fee is calculated by taking the total cash value minus any loans or surrender charges.  the remaining balance is the surrender value.

endowment policy - the policy ends at a certain age, usually age  90, 95 or 100.  at the time the policy ends, the policy endows to where the cash value equals the death benefit.

Answer 2

Paid up value is the value of a lapsed policy to be paid at the time of maturity . Surrender value is the amount payable on surrender. (ie) 85% of the paid up value.

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Answer 3

keeping it simple:  Paid up value is the amount that you've "Paid in" to the policy (minus fees)  and Surrender value is the amount you can have back.  

Usually the longer you wait the higher the surrender value becomes in relation to the paid up value.  Your company will have specifics on this rule.