1. COO and Senior Agent, Outlook Life, All 50 States
    Cash surrender value in lie insurance is the amount of money you would walk away with if you decided to end a permanent policy before you passed away, or before the policy matured.

    Term life insurance does not have any cash value, so has no cash surrender value.

    In Whole Life or Universal Life, there is a surrender charge deducted from the cash value the first years, so there may be little or no cash surrender value until you have had the Whole Life or Universal Life policy for a few years. The amount of surrender value will depend on how you funded the policy, whether you had any loans out against it, policy performance, and length of time the policy was in effect.
    Answered on May 9, 2013
  2. William Bridgers
    Specialist, LTCi, DI, Annuities, Life, Designs In Life, LLC, Utah
    Answers above are correct, but thought you might like to know that
    1.  The column that is usually titled "Account Value" is the cash value that is usually used by the carrier to determine the amount of loanable money the policyowner may borrow. 
    2.  When the cash value in the "surrender value" column equals the "Account Value", it indicates that the surrender period or charges are no longer part of the cash value equation.  However, if a loan is still outstanding, the surrender charge period could be over, but the loan would be reflected in a surrender charge lower than the account value.
    Answered on May 9, 2013
  3. Daniel J. Wendol
    CEO, TRS Wealth Management Inc., Florida
    The cash surrender value of a life insurance policy is the amount of cash the owner would receive if the policy was cancelled or terminated by the owner.  The number is calculated by taking the cash value in the policy and subtracting any applicable loans and/or surrender charges.  There is a difference between cash value and net cash surrender value due to these loans and charges.
    Answered on May 9, 2013

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