If you have a permanent life insurance policy that has been building cash value, and choose to terminate or cancel that policy, “Cash Surrender Value” is the amount you will receive in accumulated value, less any fees or outstanding loan amounts that may apply. If you are using your life insurance policy as an asset, or as collateral against another type of loan, cash surrender value is important, as CSV will be used to determine the actual worth of the policy. By using the cash surrender value as the collateral for the loan, the lender is assured of the recovery of the value of the loan, even if the debtor fails to honor his or her obligations.
Disclaimer - The above description/explanation is intended as a guideline only,and is not to be interpreted as a recommendation to buy or sell any insurance products, or to provide legal or financial advice of any kind. Also, Bergen Insurance. Does not warrant or assume any legal liability or responsibility for the accuracy, completeness, or usefulness of any information, apparatus, product, or process disclosed. No reproduction or republication permitted.