The owner of a cash value policy may surrender the entire policy. This action will cancel the insurance coverage, and the policyowner is entitled to receive the cash surrender value.

The owner of a cash value policy may surrender the entire policy. This action will cancel the insurance coverage, and the policyowner is entitled to receive the cash surrender value.

• A. Mortality Table
• B. Survivor Protection
• C. Surrenders
• D. Claim Form Provision

Answer: (C)

Surrendering a cash value policy is a nonforfeiture option that lets the owner access the accumulated cash value. In these policies, part of each premium builds up as cash value. When you surrender the policy, the coverage ends, and you receive the cash surrender value—the accumulated cash value minus any surrender charges and any outstanding loans or withdrawals. This option provides liquidity, but it forfeits future protection. The other terms listed don’t describe this action: a mortality table is used for pricing and underwriting risk, a term like survivor protection isn’t a standard feature describing surrender, and a claim form provision relates to filing a death claim rather than cashing out the policy.

Surrendering a cash value policy is a nonforfeiture option that lets the owner access the accumulated cash value. In these policies, part of each premium builds up as cash value. When you surrender the policy, the coverage ends, and you receive the cash surrender value—the accumulated cash value minus any surrender charges and any outstanding loans or withdrawals. This option provides liquidity, but it forfeits future protection. The other terms listed don’t describe this action: a mortality table is used for pricing and underwriting risk, a term like survivor protection isn’t a standard feature describing surrender, and a claim form provision relates to filing a death claim rather than cashing out the policy.