Which of the following describes the benefits of "surrendering a policy"?

Surrendering a policy refers to the process where the policyholder terminates their insurance policy and receives the cash value that has been accumulated over time. This option allows the policyholder to convert their insurance investment into cash, which can be particularly beneficial if they no longer need the insurance coverage or want to access those funds for other uses.

When a policy is surrendered, any cash value available at that time is paid to the policyholder, and the insurance coverage ceases. This is a crucial point, as it signifies that the individual will no longer have the benefits of death coverage associated with that specific policy.

The other options do not accurately reflect what it means to surrender a policy. Accessing higher death benefits typically relates to maintaining a policy or switching to a different type, while having no financial implications does not acknowledge the potential tax consequences or loss of coverage that may occur upon surrender. Additionally, obtaining a new policy without underwriting generally involves a different process and is not linked to the action of surrendering a previous policy.