cash surrender value

cash surrender value definition - business

cash surrender value

The money paid by an insurance company to a policyholder who cancels an annuity or cash-value life insurance policy. Cash value accumulates when premiums and interest on any previous cash value exceed the cost of insurance. Generally, the cash value a policyholder receives on cancellation is not taxable unless it exceeds the sum of the premiums paid. Also called surrender value.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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