67. If you surrender your policy early or simply stop paying premiums, you still own the equity you have built. You can choose to:
Answer: A
You can choose to get a check for the remaining cash values.
If you surrender your policy early or stop paying premiums, you can opt to get a check for the remaining cash values that you have built up in your policy.
A) Get a check for the remaining cash values.
This option is correct because it directly states that upon early surrender of the policy, the policyholder is entitled to the cash values accrued, which can be received as a check. This aligns with the principles of cash value insurance policies.
B) Allow the company to retain the cash value, which grows with accumulated interest.
This option is incorrect because once the policy is surrendered or premiums are no longer paid, the policyholder does not have the choice to allow the company to retain the cash value. The policyholder has the right to access their accumulated cash value instead.
C) Allow the company to retain the cash value and reduce the face amount of the contract to 50% of the original agreement.
This option is incorrect as it implies a reduction of the contract's face amount, which is not applicable when a policy is surrendered. The policyholder would not allow the company to retain cash value while simultaneously reducing the face amount in this context.
D) Receive an annuity for the cash value for 10 years.
This option is incorrect because receiving an annuity is not a choice typically associated with surrendering a policy. Instead, the policyholder can simply cash out their accumulated cash value, rather than converting it into an annuity payment.
Conclusion
The correct answer is definitively A, as it accurately reflects the policyholder's right to access their cash value upon surrendering the policy. All other options misinterpret the consequences of policy surrender, either by suggesting incorrect actions that can be taken or by misrepresenting the terms of the policy.