What does a Cash Surrender Value allow a policyholder to do?

A Cash Surrender Value refers to the amount a policyholder can receive upon canceling a life insurance policy that has accumulated cash value. This is particularly applicable in whole life and some universal life insurance policies, where a portion of the premium payments is set aside to build cash value over time. When a policyholder decides to surrender (or cancel) their policy, they are typically entitled to receive this accumulated cash value, which serves as a form of savings that they can access before the policy's maturity or the insured event occurs.

Choosing to cancel the policy allows the policyholder to liquidate their investment in the policy and use the funds as they see fit. Once the policy is surrendered, however, the coverage ends, and the individual must consider the implications of losing life insurance protection.

The other options do not accurately describe the function of Cash Surrender Value. For instance, withdrawing cash in installments implies ongoing access to funds while maintaining the policy, which is not consistent with the concept of surrendering a policy. Increasing the policy benefits or extending the policy term are also unrelated, as these activities do not pertain to the cash surrender process but rather to changes in coverage or renewal of the policy.