Surrender Value

Updated: 09 June 2023

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.

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