What is covered by the term "cash surrender value" in insurance policies?

The term "cash surrender value" refers specifically to the amount of money that an insurance policyholder can receive if they choose to terminate their policy, rather than allowing it to remain in force until a claim is made (such as in the case of death benefits). This value accumulates over time as the policy remains active and is particularly relevant in whole life or permanent life insurance policies. When a policy is surrendered, the policyholder is entitled to this cash value after any applicable surrender charges are deducted.

This option stands out because it accurately describes the financial benefit that the policyholder can access if they decide to cancel their coverage, offering a liquidity option rather than just a death benefit or borrowed amount against the policy. The other options do not define cash surrender value appropriately, focusing instead on different aspects of life insurance policies, such as death benefits or premiums paid.