surrender value


Also found in: Dictionary, Wikipedia.

Cash Value

The amount of cash that becomes available to an insured person upon the cancellation of his/her insurance policy. Most often, this applies to the savings portion of a canceled whole life policy. This value is considered an asset and can be borrowed against or used as collateral. It may also be called a cash surrender value or a surrender value.

surrender value

References in periodicals archive ?
Exempt life insurance cash value: The maximum life insurance cash surrender value a life insurance policyowner can exempt from creditor claims.
Sellers benefit from a better price than the surrender value offered by the life company.
If you do need to raise cash on your policy, the first step is to get a surrender value from your insurance company.
3) You may request that the cash surrender value of this policy be paid to you, ending the policy.
A: For paying more than two years of installments on the lot, Angel is entitled to receive cash surrender value of her payments on the lot equivalent to fifty per cent of the total payments made.
In such cases, the excess of the sum of (1) the increase in net surrender value (cash surrender value less any surrender charges) during the taxable year and (2) the cost of life insurance protection for the year over premiums paid under the contract during the year is taxable to the policyholder as ordinary income.
An endowment policy acquires surrender value after premiums have been paid for three years.
In general, if interest rates are lower at the time of withdrawal than at the time the annuity contract was issued, the annuity's cash surrender value will be increased (thus, market value adjusted).
Producers and clients believe that the cash surrender value of a life insurance policy is approximately equal to its interpolated terminal reserve (ITR, explained later), and that the ITR is the policy's FMV.
If you stop paying premium before the end of the policy term, you are entitled to receive an amount, called surrender value, depending on the number of years completed, the premium and the bonus received.
Hugh assigns 60 percent of the cash surrender value of that contract to DEF Insurance to purchase an annuity contract.
If he skipped a premium payment, the insurance company would take a loan out against the cash surrender value and use the loan proceeds to make the premium payment for him.