A policy owner can surrender a whole life policy for what amount during the insured's lifetime?

The correct answer is net cash value because this amount represents the accumulated value of the policy that the policy owner can access while the insured is still alive. Whole life insurance policies build cash value over time based on premiums paid and the interest accrued by the insurance company.

When a policy owner surrenders a whole life policy, they receive the cash value minus any outstanding loans against the policy. This cash value reflects the savings component of the policy that can be accessed, unlike the face value, which is the amount paid out to beneficiaries upon the insured's death. The sum of all premiums paid does not account for interest earned or any deductions for fees, making it an inaccurate reflection of the accessible amount. Replacement value refers to the cost of replacing the coverage, which is not relevant in the context of surrendering a whole life policy.

Thus, net cash value accurately represents the financial benefit a policy owner can receive while the insured is alive.