Definition - What does Surrender Value mean?
Surrender value is the amount of money that a policyholder or annuity holder would get from the insurance company in case they voluntarily terminate the policy before its maturity date or the insured event occurs or .
It is also known as cash surrender value or cash value.
Insuranceopedia explains Surrender Value
Most permanent life insurance policies, such as whole life policies, feature a savings component known as a cash value. It accumulates over time in an account for the policyholder's future use. It may be used as the surrender value in case of a policy surrender or termination, as a loan value in case a policyholder decides to get a policy loan, or as an automatic premium payment if the policyholder fails to pay his premium on time.
Top Reasons to Forgo Mortgage Protection Life Insurance