If you choose to surrender your life insurance policy for cash value you will typically be taxed the difference between any proceeds received and the cost of the life insurance policy. (termlife2go.com)
If you surrender the entire policy for cash value, you terminate the policy. (encharter.com)
Also, according to the American Council of Life Insurers, you can cancel or surrender the permanent life insurance policy for its cash value. (pocketsense.com)