If a policyowner chooses to forgo the insurance benefit, which option could they select instead?

When a policyowner decides to forgo the insurance benefit, selecting the cash surrender value is a viable option. This option allows the policyowner to receive the accumulated value of the policy in cash, effectively terminating the insurance coverage. The cash surrender value is the amount available to the policyowner after any outstanding loans and surrender charges are deducted.

This choice is particularly relevant for whole life policies, which build cash value over time. It allows the insured to access those funds, which could be essential for various financial needs without leaving the insurance benefits in place. By opting for the cash surrender value, the policyowner converts their insurance policy into immediate cash, which can then be used at their discretion.

Other options, such as loans against the policy or reduced paid-up insurance, involve keeping the policy in force in some capacity, while accumulating at interest means the cash value grows but does not provide an immediate cash benefit to the policyowner. Choosing the cash surrender value provides a straightforward financial benefit for those who no longer need or want the insurance coverage.