A policyholder can obtain money from the insurance company while remaining insured by which method?

The method by which a policyholder can obtain money from the insurance company while still remaining insured is through taking a policy loan. This option allows the policyholder to borrow against the cash value of their life insurance policy. As long as the loan is within the limits of the available cash value, the policyholder can access funds while keeping the policy in force.

When a policy loan is taken, the policy remains active, and the outstanding loan amount will accrue interest. It’s important to remember that the death benefit can be reduced by the amount of any unpaid policy loans at the time of the policyholder's passing.

In comparison, surrendering the policy for its cash value would terminate the insurance coverage entirely, thus removing the policyholder’s insurance protection. Discontinuing premium payments may lead to policy lapse after a grace period, which would also mean losing coverage. The extended insurance option, while allowing some coverage without payments, would not provide immediate access to cash since it typically converts to a paid-up policy with limited or no cash value available upfront. Hence, taking a policy loan stands out as the method that maintains insurance coverage while providing access to cash.