Cash Surrender Value Of Life Insurance at Life

Cash Surrender Value Of Life Insurance. Cash surrender value is the accumulated fraction of a permanent life insurance policy’s cash value available to the owner upon retiring from the policy before their death. What is the difference between surrender value and cash value of a life insurance policy?

Paying premiums could build the cash value and help increase your financial security. It is an amount that an insurance company pays when you decide to “surrender” your insurance policy back to the insurance company. This amount is payable to you after deducting the applicable surrender charges.

Insurance products (Life Insurance)

So, although your cash value is £10,000, the provider could charge you a 35% early withdrawal fee of £3,500, leaving you with a surrender value of £6,500. If you’ve held onto your whole life insurance policy from before 1992, your policy may have a cash surrender value. Cash surrender value applies to whole life, universal life, or variable universal life policies. So, although your cash value is £10,000, the provider could charge you a 35% early withdrawal fee of £3,500, leaving you with a surrender value of £6,500.