what is cash surrender value 
cash surrender value is money a life insurance policyholder receives for canceling their policy before it matures or they pass away this cash value is the savings component of most permanent life insurance policies such as whole life and universal life it is also known as policyholder s equity the insurance company could deduct a fee before paying out the cash value known as a surrender charge understanding cash surrender valuesome permanent life insurance policies build cash value as you pay premiums this is money you could take out while still alive if you cancel your life insurance policy known as a surrender the insurance company will send you a check for your cash value in a whole life policy your cash value growth is guaranteed however during the early years of a whole life insurance policy the savings portion brings very little return compared to the premiums paid as time goes by you build more cash value which increases your cash surrender value 1