Life
Surrender Value
What you'd receive if you cancel a permanent life policy and cash it out early.
What it actually means
The surrender value is the cash value minus any surrender charges the insurer deducts for cancelling early — these charges typically shrink over the first 10–15 years of the policy. It's rarely equal to the full cash value in the early years.
Example: A policy with $10,000 in cash value might have a surrender value of only $6,000 in year three due to surrender charges.
See it in context
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