What is the term for the amount of money received from an insurance policy if it is surrendered before maturity?

The correct answer is cash value. In the context of insurance policies, particularly whole life or universal life insurance, the cash value refers to the amount of money that the policyholder can receive if they decide to surrender the policy before it reaches maturity or expires. This cash value accumulates over time as the policy remains in force and can be withdrawn or borrowed against.

When a policyholder opts to surrender their life insurance policy, they are entitled to this cash value, which represents a portion of the premiums paid over the life of the policy. Understanding cash value is crucial for policyholders as it provides insight into the potential financial returns of their policy beyond just the death benefit.

The other options are not related to the concept of receiving money from a surrendered insurance policy. Renewal refers to the process of extending the term of the policy, premium is the amount paid for the insurance coverage, and the face amount refers to the total amount the insurer will pay upon the death of the insured, which does not apply in the case of surrendering the policy.