Cash Surrender Value

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Cash Surrender Value Cash surrender value is the amount left over after fees when you cancel a permanent life insurance policy (or annuity). Simply put, the actual amount of money you will receive if you choose to terminate a permanent life insurance policy before its maturity date, or before you die. When a policy is surrendered, the policy owner will receive all of the remaining cash value in the policy, known as the cash surrender value. This amount will generally be slightly less than the total amount of cash value in the policy because of surrender charges assessed by the policy. It should be noted that not all types of life insurance provide cash value. Paying premiums could build the cash value and help increase your financial security. The surrender value is the actual sum of money a policyholder will receive if they try to access the cash value of a policy. In most cases, the difference between your policy's cash value and surrender value are the charges associated with early termination. Also, know that in most whole life insurance plans, the cash value is guaranteed, but it can only be surrendered when the policy is canceled. Policyholders may borrow or withdraw a portion of their cash value for current use. A policy's cash value may be used as collateral for low interest policy loans. #benewinsurance #insurtech #inclusiveinsurance #insurance #reinsurance #takaful

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