Surrender Value
The amount of cash value that the policyholder would receive if they voluntarily terminate (surrender) a permanent life insurance policy before the insured's death. There may be surrender charges, especially in the early years of the policy.
Detailed Explanation
If a policyholder decides to surrender their policy for whatever reason, they can receive the surrender value.
Practical Example
If Robert decides he no longer needs his whole life insurance policy, he can surrender it and receive the surrender value, which is the cash value minus any applicable surrender charges.
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