cash surrender value investment & finance definition
The amount of money the holder of a cash-value life
insurance policy would receive from the life insurance company if the insurance
policy were cancelled. A cash-value life insurance policy, in addition to being
a life insurance policy, is also an investment and savings account whose value
increases each year that it is held. Policyholders also can borrow against the
value of the policy.
See cash surrender value in Wall Street Words
The money paid by an insurance company to a policyholder who is canceling an annuity or cash-value life insurance policy. Cash value accumulates when premiums and interest on any previous cash value exceed the cost of insurance. Generally, the cash value a policyholder receives upon cancellation is not taxable unless it exceeds the sum of the premiums paid. Also called surrender value.
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