Cash Surrender Value

Cash surrender value is the amount available to the owner of a life insurance policy. This is when you decide to stop the policy before it becomes payable due to the death of the person whose life is insured under the policy.

This does not apply to term insurance. For a policy to have cash surrender value there has to be money that has been building up over time and will declare an increasing surrender value over the years.

Be careful with cashing in a policy. There is going to be some tax implications and you may find that replacing the insurance coverage will be more expensive.

As always, Turners Tips recommends that you take control of the consequences by planning ahead whether it is your auto and home insurance or your life insurance policy.