What is the provision about the policy surrender value in Virginia life insurance laws?

Every life insurance policy in Virginia is required to disclose the surrender value and the terms associated with accessing that value to the policyholder. This provision is crucial because it ensures transparency—policyholders can clearly understand how much they can receive if they choose to surrender their policy before it matures or the insured individual passes away. This disclosure also includes any conditions or fees associated with accessing the surrender value, giving policyholders a complete picture of their options.

This requirement helps protect consumers by ensuring they are fully informed about their financial choices and potential consequences. The clarity regarding the surrender value assists policyholders in making informed decisions about their insurance coverage, including understanding the financial implications of surrendering the policy.

Confidentiality of the surrender value, discretion by the insurer, and the existence of a zero surrender value do not align with the requirement for transparency mandated in Virginia law and would not effectively serve the interest of the insured.