cash surrender value


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Noun1.cash surrender value - the amount that the insurance company will pay on a given life insurance policy if the policy is cancelled prior to the death of the insured
amount, amount of money, sum, sum of money - a quantity of money; "he borrowed a large sum"; "the amount he had in cash was insufficient"
References in periodicals archive ?
COLI cash surrender value changes continue to be subject to volatility, and through September, the Company has experienced a decrease (loss) of $2.
After reviewing those items, he shows the client internal rate of return calculations for both cash surrender value and the life insurance value (at the client's death) to determine a policy's potential after-tax financial return on the premiums paid.
Producers and clients believe that the cash surrender value of a life insurance policy is approximately equal to its interpolated terminal reserve (ITR, explained later), and that the ITR is the policy's FMV.
Statutory Exemption for Cash Surrender Value of Life Insurance and Proceeds of Annuity Contract: Although there is little mystery to the interpretation of [section] 222.
When an individual or business engages in a life settlement transaction, the amount it recoups is based on the policy's face amount and cash surrender value as well as other factors, such as the insured's health, age and the current policy premium.
If distributed, the policy's value for income and gift tax purposes also would be its cash surrender value.
A surrender option is an American-style put option that entitles its owner (the policyholder) to sell back the contract to the issuer (the insurer) at the cash surrender value.
That is, the premium funds both the insurance and an increase in the policy's cash surrender value.
The paid-up additions carry a much lower commission and, therefore, leave the policy's cash surrender value much higher in the early years.
Policy loans and withdrawals will reduce the policy's death benefit and cash surrender value and may have tax consequences if the policy should lapse.
The legislation enables seniors to pay for their long term care by selling their life insurance policies for as much as 10 times more than the cash surrender value and applying those proceeds toward their long term care.