Final answer:
The privilege of accessing the cash value of an insurance policy if it is surrendered is known as the surrender value.
Step-by-step explanation:
The privilege of accessing the cash value of an insurance policy if it is surrendered is known as the surrender value.
In cash-value life insurance policies, a portion of the premiums paid by the policyholder accumulates as a cash value over time. If the policyholder decides to surrender the policy, they can receive the surrender value, which is the accumulated cash value minus any applicable surrender charges. This allows the policyholder to access some of the funds tied up in the policy, although surrendering the policy may have tax implications or result in the loss of the death benefit.