Superquote Terms: Cash Surrender Value

Cash surrender value: This is a sum or amount of money received by a policyholder when he surrenders an insurance policy. For most general insurance policies there is no cash surrender value, though some insurers refund some of the premium if a policy is cancelled early.  The term normally applies to life insurance policies.

Often a cash surrender value is less than the pro rata value of a policy at a given point.  there are even businesses who in the past have bought up unexpired policies, paying people more than their cash surrender value because they can earn more from the policy when it completes its term.