Under which condition would a policy owner usually see a higher surrender value?

The scenario in which a policy owner would usually see a higher surrender value is when the policy is held longer without loans. As time goes on, the cash value of a variable life insurance policy typically increases due to the accumulation of investment performance and interest. By avoiding loans against the policy, the cash value remains intact and continues to grow, leading to a higher surrender value if the policy owner decides to terminate the policy.

Holding the policy longer allows for the potential appreciation of the cash value, as well as the possibility of rising investment returns, which are critical components of variable life policies. Since the policy does not have any loans taken out, there would be no reduction in the cash value that would normally occur when funds are withdrawn through loans, further enhancing the surrender value.

In contrast, the other options focus on factors that are less favorable for increasing surrender value. Non-participating policies generally do not accumulate cash values in the same way that participating ones do. Low market interest would negatively affect investment returns, thereby decreasing the cash value. Lastly, the age of the insured does not inherently relate to the policy's cash value and surrender value; rather, it could influence other aspects of the policy such as premiums and insurability.