What Is Cash Surrender Value of Life Insurance?
Cash surrender value is the sum of money an insurance company pays to an annuity or policyholder in the event that the life insurance policy is voluntarily terminated before its maturity date. It is the savings component of most permanent life insurance policies, particularly whole life, that are payable before death occurs. Cash value doesn’t start to build up on a policy until premiums have been paid around two years. Term life insurance does not build up a cash value.
