Cash Surrender Value
Definition of 'Cash Surrender Value'
The CSV of a life insurance policy can be used for a variety of purposes, such as paying off debt, funding a child's education, or supplementing your retirement income. However, it is important to note that surrendering a life insurance policy will result in a loss of future death benefits.
There are a few things to keep in mind when considering the cash surrender value of a life insurance policy. First, the CSV will vary depending on the type of policy you have. For example, the CSV of a term life insurance policy will be lower than the CSV of a permanent life insurance policy. Second, the CSV will also vary depending on the age of the policy and the current interest rates. Third, you may have to pay surrender charges if you surrender your policy within a certain period of time.
If you are considering surrendering your life insurance policy, it is important to speak to your insurance agent to understand the implications of doing so.
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