How can a life insurance policy be surrendered?

Surrendering a life insurance policy typically involves formally requesting the cancellation of the policy in order to receive its cash value. When a policyholder decides to surrender their policy, they are essentially giving up the death benefit coverage in exchange for the cash value that has accumulated over the years. This process usually requires the policyholder to submit a formal request to the insurance company, which will then process the cancellation and pay out the cash value remaining in the policy.

Other options, while related to life insurance policies, do not directly pertain to the surrendering process. For instance, transferring ownership means the existing policy continues under a new name, but it does not involve surrender for cash value. Similarly, applying for a loan against the policy utilizes the cash value as collateral while keeping the policy active, rather than surrendering it. Lastly, submitting an annual report does not pertain to the surrender process; it may be part of maintaining or reviewing the policy but does not facilitate the surrender itself. Thus, the process of surrendering clearly aligns with formally requesting cancellation to access the cash value.