What is meant by the term "surrender value" in a VUL policy?

Surrender value refers to the amount of money a policyholder is entitled to receive if they choose to terminate their Variable Universal Life (VUL) insurance policy before its maturity or before they pass away. This value is particularly significant because it reflects the accumulated cash value of the policy, which can be influenced by factors such as premium payments, investment performance of the cash value, and any applicable deductions or fees.

When a policyholder surrenders their policy, they get back the surrender value, which is essentially the cash reserves that have built up over time, minus any penalties or outstanding loans against the policy. This feature provides flexibility for the policyholder, allowing them access to funds if needed, as opposed to the policy merely being a death benefit.

In the context of the other options, while death benefits paid to beneficiaries and premiums paid by the policyholder are relevant components of the policy, they do not describe surrender value. The reference to future cash value may also imply important information about the policy's performance trajectory, but does not directly equate to surrender value, which specifically pertains to the amount available upon policy termination.