Cash Surrender Value Explained

Cash surrender value is the payout received when a permanent life insurance policy is terminated or matures, after building cash value over time.
To estimate it, add guaranteed cash value and any earnings or dividends, then subtract surrender charges that can apply during a policy waiting period.
Surrendering can free up money and end future premiums, but it also gives up the death benefit and may create fees or taxes.
Whether surrendering makes sense depends on financial goals, beneficiary needs, and whether the cash is more useful elsewhere than inside the policy.
If you replace surrendered coverage, you may need a new application, and insurers may consider that prior surrender alongside new policy fees too.