YOU ASK:
What is the definition of Cash Surrender Value?
WE ANSWER:
The Cash Surrender Value is the amount that the policy owner or annuity owner stands to receive if he surrenders his permanent life insurance policy or annuity contract. Adjustments such as policy loans, tax penalties and so on are deducted from the amount.
For life insurance policy, this is a non-forfeiture option so that even when a policyowner stops paying for his policy for whatever reason, he still is able to get something back - his premium payments are not totally forfeited in favor of the insurance company.
For annuities, the cash surrender value is equal to the accumulated value of the annuity, less any charges, such as surrender charges and tax penalties.
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