What typically occurs to cash value if an insurance policy is surrendered before maturity?

When an insurance policy is surrendered before its maturity, the policyholder is typically eligible to receive the cash value that has accumulated within the policy. This cash value represents the portion of the premiums paid that has built up over time, which can be accessed by the policyholder when they choose to terminate the policy. The cash value can be withdrawn or converted into a payout, providing financial resources that may be used for various needs.

While surrendering a policy often means giving up life insurance coverage, the cash value is a benefit that the policyholder can claim at that time. This typically becomes important in situations where the policyholder no longer needs the coverage or requires immediate cash for other financial obligations.