What happens when a policy is surrendered for its cash value?

When a policy is surrendered for its cash value, the insured chooses to terminate the life insurance policy in exchange for the accumulated cash value. This process effectively ends the contract between the policyholder and the insurance company, meaning that there will no longer be any death benefit coverage provided under that policy.

Once the policy is surrendered, it is considered void, and the coverage cannot be reinstated. Reinstatement typically requires the policy to remain in force, which is not the case after surrender. Therefore, the correct conclusion is that coverage ends completely upon surrendering the policy. The other choices imply possibilities for reinstatement or conversion that do not apply here, as surrendering for cash value signifies a complete termination of the policy.