Cash Surrender Value

Updated: 09 June 2023

What Does Cash Surrender Value Mean?

Cash surrender value refers to the amount of money that an insurance company will compensate a life insurance or annuity policyholder in case of a voluntary termination of the policy before it matures or the death of the insured. It is a feature available in most permanent life insurance policies with a savings component.

It may also be known as surrender value.

Insuranceopedia Explains Cash Surrender Value

The cash surrender value is based on the total premiums paid up to the termination date minus any withdrawals, outstanding loans, and surrender charges. If a policyholder makes any withdrawals or takes out a loan, these reduce the policy’s surrender value. As for surrender charges, they typically decrease as time goes on and no longer factor in after a certain period, such as 15 years.


Surrender Value

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