Cash Surrender Value Law and Legal Definition

In life insurance, cash surrender value means the amount, before adjustments for factors such as policy loans that the owner of a permanent life insurance policy is entitled to receive if the policy does not remain in force until the insured's death. However in annuities, it is the amount of a deferred annuity's accumulated value, less any surrender charges, that the contract holder is entitled to receive if the policy is surrendered during its accumulation period. This is also known as cash value and surrender value.