Upon policy surrender, what is the relationship between the cash value and future coverage?

Surrendering a life insurance policy typically results in the termination of coverage provided by that policy. When an insured surrenders their policy, they choose to receive the cash value accumulated within the policy. This also means that the insurance contract itself is no longer in force, which directly impacts the coverage. Once the policy is surrendered, all rights to benefits, including any death benefit, cease. Thus, future coverage indeed ends when the cash value is surrendered, solidifying the relationship between the cash value and the termination of policy benefits.

The other options reflect misunderstandings about the nature of policy surrender. Retaining coverage based on cash value is not possible since cash value is a component that serves as a savings element in certain types of life insurance. The idea that surrender only affects cash value would incorrectly imply that the policy remains active, which is not the case. Lastly, stating that coverage continues until its term expires ignores the immediate implication of surrendering the policy, which effectively cancels the coverage regardless of any term duration.