Which term describes the amount available if the policy is surrendered for cash?

Which term describes the amount available if the policy is surrendered for cash?

• A. Guaranteed Insurability
• B. Accelerated Benefit
• C. Long Term Care Rider
• D. Cash Surrender Value

Answer: (D)

Cash surrender value is the cash amount you can receive if you cancel a cash-value life policy. It comes from the policy’s accumulated cash value, which grows over time as premiums are paid and credited. When you surrender, the insurer pays the cash value minus any surrender charges and any outstanding loan balances on the policy. This is different from guaranteed insurability (the option to buy more coverage later without proof of good health), accelerated benefit (early access to part of the death benefit under certain conditions), and a long-term care rider (additional LTC benefits attached to the policy).

Cash surrender value is the cash amount you can receive if you cancel a cash-value life policy. It comes from the policy’s accumulated cash value, which grows over time as premiums are paid and credited. When you surrender, the insurer pays the cash value minus any surrender charges and any outstanding loan balances on the policy. This is different from guaranteed insurability (the option to buy more coverage later without proof of good health), accelerated benefit (early access to part of the death benefit under certain conditions), and a long-term care rider (additional LTC benefits attached to the policy).