Cash Surrender Value is associated with which concept?

Cash Surrender Value is associated with which concept?

• A. A nonforfeiture option allowing policy surrender for cash value
• B. A loan against the policy's death benefit
• C. The policy's face amount payable at death
• D. The amount paid out as an annuity during lifetime

Answer: (A)

Nonforfeiture options in life insurance give you a way to recover value if you stop paying premiums. Cash surrender value is the amount you receive when you surrender the policy, reflecting the policy’s accumulated cash value after any surrender charges and outstanding loans. It’s the lump-sum you get for ending the contract, not the death benefit, not a loan against the death benefit, and not an annuity payout.

Nonforfeiture options in life insurance give you a way to recover value if you stop paying premiums. Cash surrender value is the amount you receive when you surrender the policy, reflecting the policy’s accumulated cash value after any surrender charges and outstanding loans. It’s the lump-sum you get for ending the contract, not the death benefit, not a loan against the death benefit, and not an annuity payout.