What does a policyholder receive upon surrendering a policy with cash value?

When a policyholder surrenders a policy that has accumulated cash value, they receive the cash surrender value of the policy. This amount is essentially the cash value that has built up over the course of the policy, minus any outstanding loans, penalties, or other adjustments defined in the policy terms.

The cash surrender value represents the portion of the policy's cash value that the policyholder can actually access at the time of surrender. This is typically less than the total cash value at times when fees or penalties may apply, but it is the specific sum that the insurer provides during this process. This cash surrender value can vary depending on the length of time the policy has been active and the terms of the insurance contract.

In contrast, options suggesting a loan against the policy or future premium payments do not reflect the immediate transaction that occurs upon surrender. The cash value minus penalties does not provide the exact terminology defined in insurance policies, which is specifically the cash surrender value.