Which statement about surrender value under traditional participating life insurance products is true?

The statement regarding surrender value in traditional participating life insurance products is particularly true because participating policies often feature a robust cash value component that accumulates over time. These policies typically provide a greater surrender value compared to non-participating policies because they share in the insurer's profits, resulting in dividends that can enhance the cash value. Furthermore, the surrender value can vary depending on the age of the insured, as it is influenced by the policy's performance over time, premium payments, and the overall insurance company's financial health.

Choosing this answer reflects an understanding of how participating policies operate differently from non-participating ones, particularly regarding their emphasis on cash value growth and policyholder benefits. This understanding is crucial for agents and clients alike, as it informs decisions regarding the potential value and benefits of these insurance products over their lifespan.