Cash surrender value is the money you'll receive if you cancel permanent life insurance, and there are tax implications

Posted On: Feb 28, 2021   |   Posted By: Business Insider

Cash surrender value is the money you'll receive if you cancel permanent life insurance, and there are tax implications

Summary List Placement
Permanent life insurance policies have a cash value, in addition to a death benefit.
If you cancel a permanent life insurance policy, you receive the cash value, less any fees or loans. This is known as cash surrender value.
Cash surrender value has tax implications that should be discussed with your accountant or tax advisor.
Policygenius can help you compare life insurance policies to find the right coverage for you, at the right price »
Table of Contents: Masthead Sticky There are two types of life insurance: permanent life and term life. Term life insurance is best suited to younger people who want to protect their family, and it only lasts for a specific period of time. Unlike term life insurance, permanent life insurance never expires.
Permanent life insurance has a cash value component in addition to the death benefit that's payed out to your loved ones after you die. You can take a loan on the cash value or use it as collateral during your lifetime, tax deferred. This is why...

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