Which benefit does the Cash Surrender nonforfeiture option provide to the policyholder?

The Cash Surrender nonforfeiture option provides the policyholder with the full cash value of the policy at the time of surrendering it. This means that if the policyholder decides they no longer want to keep the policy, they can cash it in and receive the accumulated cash value. This value typically consists of the premiums paid minus any applicable fees or charges, plus any interest or dividends that have accumulated over the life of the policy.

The benefit of this option is significant for policyholders who may find themselves in need of liquidity or prefer not to maintain an insurance policy that no longer serves their financial goals. By offering the full cash value, the Cash Surrender option provides a way for individuals to access funds tied up in their life insurance policy.