cash surrender value

Thân thiện

The policyholder reviews the cash surrender value statement from their insurance company.

Definition

1. Noun:
   • The guaranteed sum payable by an insurer: The cash surrender value is the predetermined amount of money an insurance company guarantees to pay to the policyholder if the policy is voluntarily terminated or surrendered before it matures or before the insured event (typically death) occurs.

Usage

• The term is used specifically in the context of life insurance and certain annuity contracts. It represents the savings or investment component of a policy that has accrued value over time, minus any applicable surrender charges or fees.
• It is a key figure for policyholders considering cancelling their coverage to access funds.

Examples

• Noun:
  • Before cancelling your policy, you should check the cash surrender value to see how much you would receive.
  • The statement showed that the policy's cash surrender value had grown significantly over the last decade.
  • He decided to surrender the policy and used the cash surrender value as a down payment on a house.

Advanced Usage

• "To access the cash surrender value": This phrase describes the action of terminating the policy to receive the payout.
  • The policyholder needed funds urgently and chose to access the cash surrender value.
• "Net cash surrender value": This refers to the amount paid after deducting any outstanding loans or interest against the policy.
  • After accounting for the loan, the net cash surrender value was much lower.

Variants and Related Words

• Surrender Value (n): A more general term, often used interchangeably with "cash surrender value," referring to the amount payable upon policy cancellation.
• Cash Value (n): In the context of permanent life insurance (like whole life or universal life), this is the savings portion of the policy that accumulates over time. The cash surrender value is typically the cash value minus any surrender charges.
• Policy Loan (n): A loan taken by the policyholder against the cash value of their life insurance policy. This is an alternative to surrendering the policy.

Synonyms

• Surrender proceeds: The funds received from surrendering a policy.
• Cancellation value: The value paid upon policy cancellation (less common).

Related Concepts (Not Phrasal Verbs or Idioms)

• Surrender Charge: A fee imposed by the insurance company for early termination of the policy, which reduces the cash surrender value.
• Paid-up Insurance: An option where the policyholder uses the cash surrender value to purchase a smaller, fully paid permanent policy without further premiums.

Học thuật

Noun

1. the amount that the insurance company will pay on a given life insurance policy if the policy is cancelled prior to the death of the insured