The cash surrender value is the amount the policyholder would receive if the policy was cashed in. This amount in shown on the balance sheet under Investments, Long Term Assets or Other Assets.
As the company pays a premium, part is expense and part applies to cash surrender value. The difference between the premium paid and the increase in cash surrender value represents an expense.
If you have further questions, or feel that I could be of assistance, please do not hesitate to contact me.
.JPG){kind=avatar}
As the company pays a premium, part is expense and part applies to cash surrender value. The difference between the premium paid and the increase in cash surrender value represents an expense.
If you have further questions, or feel that I could be of assistance, please do not hesitate to contact me.