surrender value

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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 ?
16 per share) associated with net death benefits and increases in cash surrender values of COLI policies, while the prior twelve-month period included a $1.
The market is so buoyant almost any policy with a surrender value above pounds 2,500 finds a buyer.
The practice has become widespread: the Life Settlement Institute reported last April that to date, life settlements have paid life insurance policy owners an aggregate of more than $1 billion over surrender value for their policies.
A life settlement turns insurance assets into cash, giving the original policyholder an amount greater than the cash surrender value in exchange for ownership of the policy.
In a survey of 100 funds the company found that in 71 cases surrender values after deducting penalties were worth at least ten per cent more than the underlying fund value.
Some insurers will also lend you money against the policy's surrender value.
Many policies could be sold for a higher figure - on average 15 per cent more - than their surrender value.
Despite the market significance of universal life, almost no information exists about the actual determinants of universal life surrender values.
Under this arrangement, the cash surrender value is expected to exceed the amount of the premiums paid in year 4 of the policies.
an industry leader in the growing life settlement marketplace, announced the results of a recent internal analysis of the company's life settlement transactions showing that senior consumers received approximately $55 million beyond the cash surrender value for unwanted or unneeded life insurance policies.
However, we believe that because viatical and life settlement contracts are sold for amounts that exceed the cash surrender value, and because recent litigation has sought to classify the trading of interests in life insurance contracts as securities, there is compelling justification for recording such contracts at amounts greater than the cash surrender value.
Depending on the state of residence, bankcruptcy exemption laws may protect all, some or none of the cash surrender values of life insurance policies.