1. 3978 POINTS
    Matt BenorePRO
    Founder, DenverWest Insurance Professionals, Inc.,
    Life Insurance Cash Surrender Value is what will be returned to you if you cancel a permanent life insurance policy that has a cash value available.   This surrender value may be less than the actual cash value as all loans will be paid back & surrender fees will be taken.

    Beware, if the surrender value is more than the money or premium you have paid in, there may be a taxable event you will have to deal with.
    Answered on January 24, 2014
  2. 1330 POINTS
    Mark TaylorPRO
    Licensed Life Agent, Life and Finance/ 50 States, New York
    Life Insurance Cash Surrender Value is tbe Cash Value of a Whole Life policy. The money accumulates upon the amount of premium paid through the years of the policy at a compounded value. The last percentage is more than bank interest. When the policy is surrendered or terminated in the later years which is best than early since hardly any accumulation or not enough value cash that accumulates will be surrendered to the policyholder.
    Answered on January 24, 2014
  3. 1976 POINTS
    Ronald HinchPRO
    Regional Marketing Director, Capital Choice Financial Group,
    The cash values in a life insurance policy is the money accumulated over years inside a cash value or whole life insurance policy.  It can be borrowed against or received in a lump sum upon surrender of the policy.  The cash value reduces the financial liability of the insurance company as it grows inside the policy because in most policies it becomes part of the death benefit.  This makes a cash value policy a very poor investment for the client and, in most cases, does not provide adequate coverage to pay for final expenses, paying off debt and the mortgage, and providing income replacement.  For those who have a cash value policy there is alternatives to restructuring to improve the financial situation.
    Answered on January 24, 2014
  4. 10983 POINTS
    Tim WilhoitPRO
    Owner, Your Friend 4 Life, Brentwood TN
    The two main types of insurance that have cash value are commonly universal life and whole life insurance policies. These types of permanent life insurance policies build cash value by over funding premiums. These types of policies have many perks and riders. If you were to cancel or "cash out" this policy type the amount of money you would receive is known as cash surrender value. The gains on this cash is taxed as ordinary income. If you were to leave the policy in force and simply borrow the cash, those funds can be used income tax free. I would advise speaking to your agent or carrier about all of your options before cashing out.
    Answered on September 22, 2015
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