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Glossary Term: CASH-SURRENDER VALUE

Definition(s) for CASH-SURRENDER VALUE:


1. ) Also called as surrender value, it refers to the money paid by an insurance company to a policyholder who is canceling 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 upon cancellation is not taxable unless it exceeds the sum of the premium s paid.



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