Which of the following statements about surrender value under traditional participating life insurance products is TRUE?

The statement that the amount of surrender value is usually higher under participating policies compared to non-participating policies is accurate. Participating life insurance policies are designed to provide policyholders with dividends, which can contribute to a higher cash value over time. This higher cash value adds to the overall financial benefit you receive if you decide to surrender the policy.

Furthermore, the statement mentions that the surrender value can vary with the age of the insured. In many cases, the surrender value of a policy may indeed be lower for older policyholders, as their policies have accumulated less cash value when compared to those who have held their policies longer. This aspect reflects the typical growth pattern of cash values in insurance products, which often increase in value over time as the policy nears its maturity.

Options that suggest different mechanisms for calculating surrender value or relate to other insurance types do not accurately describe surrender values specifically related to traditional participating life insurance policies. They might include unrelated terms or policies that don’t apply within the context of participating life insurance, further ensuring that option C stands out as the correct answer.