Cash Surrender Value

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Related to Cash value: cash surrender value, Cash Value Added

Cash Surrender Value

The amount of money that an insurance company pays the insured upon cancellation of a life insurance policy before death and which is a specific figure assigned to the policy at that particular time, reduced by a charge for administrative expenses.

The cash surrender value of an insurance policy is not based upon its actual value, but upon its reserve value—the face amount of the contract discounted at a specific rate of interest according to the insured's life expectancy. Not all life insurance policies have cash surrender values; the terms of the policy must so provide.

References in periodicals archive ?
High risk (some universal life and most variable life): Premiums, cash value and death benefit are not guaranteed at the illustrated rate.
The umpire took into account other elements, including the property's assessed value, the average value of comparable properties, and the property's market value, all of which were within the $50,000-$70,000 range to determine the actual cash value.
While similar to the older whole life products in that they allow cash value buildup, variable product cash value is invested in client-directed separate accounts and a separate general investment fund.
According to our survey, more than two-thirds of consumers don't know some types of life insurance include a cash value, and nearly half don't think of life insurance as an investment option.
The cash value component is one of the most appealing qualities of a whole life insurance policy.
Other factors affecting the market value include the type of life policy, the policy's cash value and any loans against the policy.
The arrangement is in connection with the performance of services, the employer or service recipient pays all or part of the premiums and the employee or service provider has the right to name the beneficiary or has an interest in the policy cash value.
Major capital improvement projects such as Central Park and road and bridge construction have prevented the city from making more investments, city officials said, noting that cash values of all investment funds peaked in July of 1999 with $60 million.
Actual cash value (ACV) is determined at the time of a property loss; it involves establishing, with the help of a contractor, the cost of replacing the building or personal property.
Variable-life policyholders generally have loan withdrawal privileges that allow them to access their cash value.
They are still insisting, as they must, that each insured carry his weight by insuring to value; but for the wise buyer who will take the time to determine the correct value of his property (whether on a replacement cost or actual cash value basis) and purchase the appropriate amount of insurance, carriers will eliminate the co-insurance clause and add instead an "agreed amount clause".
Symetra Life Insurance Company today announced the addition of a new lapse protection benefit to its cash value universal life (UL) insurance product, Symetra Classic UL.