Which term refers to receiving the cash value in parts from a life insurance policy?

The term that refers to receiving the cash value in parts from a life insurance policy is known as "Partial Surrender." This option accurately describes a situation where a policyholder takes out a portion of the cash value from a permanent life insurance policy while keeping the policy itself in force.

When a policyholder opts for a partial surrender, the cash value is reduced by the amount surrendered, but the coverage continues. This can be particularly useful for individuals who need access to funds but do not wish to end their life insurance protection. Partial surrenders may also come with tax implications, as the amount may be subject to income tax depending on the policy's structure and contributions.

The other terms listed do not accurately capture this concept. For example, "Full Withdrawal" implies taking out the entire cash value, which would terminate the policy, and "Cumulative Benefit" generally refers to benefits that accumulate over time rather than being accessed in parts. Lastly, "Value Loan" could refer to borrowing against the cash value but does not specifically involve receiving cash in parts as with a partial surrender. Thus, "Partial Surrender" is the term that best describes this financial transaction related to life insurance policies.