Cash surrender value refers to the amount a policyowner is entitled to receive from an insurance company upon surrendering a life insurance policy with cash value. This sum is the cash value stated in the policy minus any surrender charges and outstanding loans with interest.
A Life Insurance Settlement is the sale of an existing life insurance policy to a third party for a lump sum that is greater than the policy's cash surrender value but less than its net death benefit.
Definition and explanation of the nonforfeiture provision in life insurance policies, which allows the insured to access certain values and benefits even if they stop paying premiums.
A policy loan is a loan issued by an insurance company that is secured by the cash surrender value of a life insurance policy. The amount available for such a loan is contingent upon various factors.
Whole life insurance is a form of life insurance policy that offers both protection in the event of the insured’s death and builds cash surrender value at a guaranteed rate, which can be borrowed against. The policy remains in force for the lifetime of the insured, given that it is neither canceled nor lapses. The policyholder pays a fixed annual premium that does not increase with age.
