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 ?
This means they are barred from writing new contracts or extend them and their activities are limited to accepting premium payments, paying the cash surrender value of outstanding policies, reviving lapsed policies and such other related services.
Amounts received in excess of the tax basis up to the amount of the cash surrender value are taxed at ordinary income rates; and
Most insurance companies allow policyholders to borrow up to the policy's cash surrender value, minus the interest the insurer will charge for the loan.
Likewise, if the contract were cancelled, the buyer may seek reimbursement from the seller the cash surrender value of the payments of the property equivalent to 50 percent of the total payments made, after five years of installments, an additional 5 percent per year but not to exceed 90 percent of the total payments made.
Any change in the benefits under a life insurance contract or in other terms of the contract (other than automatic increases such as change due to the growth of the cash surrender value, payment of guideline premiums, or changes initiated by the company) that was not reflected in any earlier determination or adjustment will require a redetermination as to whether the definitional guidelines of IRC Section 7702 are still satisfied.
On the plus side, the ruling confirmed that for sellers other than investors, gain up to cash surrender value is ordinary income, but the gain in excess of cash surrender value is treated as capital gain.
In many states, life insurance contracts' cash surrender value is exempt from creditors, which can benefit clients at risk of being sued.
GWG, through its wholly owned subsidiaries, acquires life insurance policies in the secondary market from policy owners who sell their policies at a price greater than the cash surrender value, but less than the face value of the policy's benefit.
Now these businesses have another option to help compete for top talent in the marketplace thanks to the new Modified Cash Surrender Value rider from the Principal Financial Group.
Assume a variable annuity has a cash surrender value of $100,000.
For a transfer of part of the cash surrender value of an existing annuity contract for a new annuity contract issued by another insurance company, the transfer will qualify for nonrecognition of gain or loss.
If he skipped a premium payment, the insurance company would take a loan out against the cash surrender value and use the loan proceeds to make the premium payment for him.