Cash Surrender Value (Noun)
Meaning
The amount that the insurance company will pay on a given life insurance policy if the policy is cancelled prior to the death of the insured.
Classification
Nouns denoting possession and transfer of possession.
Examples
- After cancelling her life insurance policy, Sarah received a lump sum payment equal to the cash surrender value that had accumulated over the years.
- The cash surrender value of the policy was higher than Mark had anticipated when he decided to terminate his coverage.
- Policyholders should carefully review the terms of their contract to understand the process and penalties associated with cash surrender value.
- Policy loans and withdrawals typically reduce the death benefit and cash surrender value of a life insurance policy.
- James opted to receive the cash surrender value of his insurance policy rather than letting it lapse and forfeiting all benefits.