What is “cash surrender value”?
This is the amount of money you get back from your insurer if you decide to give up a policy. To figure this sum, take your policy’s current cash value and subtract any surrender charges, monthly contract charges and outstanding loans that may apply. Then add back any interest accrued. The result is what you can expect in cash surrender value.
Sometimes referred to as a surrender value or a cash value, the cash surrender value is the amount of cash that can be realized in the event that an insurance policy is cancelled. This most often involves a whole life policy that does not reach maturity for some reason. Any cash value that is inherent in the coverage at the time of the cancellation of an insurance policy will result in a cash payment to the insured party. One of the attractive aspects of many types of insurance policies is the ability to accrue cash value over time. Generally the cash value will continue to increase the longer that the policy is in effect. As the value of the policy grows, it is often possible to borrow against this cash value or even use the policy as collateral to secure a loan. Utilizing the whole life policy as an asset to secure a loan usually makes note of the current cash surrender value of the policy. Essentially, the lender will use this figure as the redeemable worth of the asset. By employin
