What is the cash surrender value?

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The cash surrender value (or just surrender value) is the amount of money you'll receive if you cash in your permanent policy. It's typically the current cash value of your policy minus any outstanding loans and interest fees, as well as any surrender or administrative fees listed in your contract. Typically the surrender value is between 50-80% of the policy's actual cash value.

A policyholder can frequently get more cash back by selling the unwanted policy to a Life Settlement company instead of surrendering it to the insurer.