The cash surrender value is the amount which is returned by insurers when policyholder surrenders the policy before it gets matured according to the company.

1. SECURE SENIOR LIFE INSURANCE
Cash Surrender Value of Life Insurance
What You Need to Know in Simple Language
By - Aaron Hazeltine
10/3/2014
The cash surrender value of life insurance is a simple concept but often
misunderstood by normal people who hardly have any technical knowledge.
Thus I have taken an initiative to make such people understand with simple
language. No Jargon.

2. What is Cash Surrender Value of Life Insurance?
The cash surrender value is the sum of the money paid to the policyholder by the insurance company,
when the policyholder has voluntarily terminated his policy before its maturity. The value of the cash is
equivalent to the savings component of permanent life insurance policies. The cash surrender value is
also known as "policyholders equity" or "cash value". This facility is a blessing, for people who are in an
urgent need of a huge amount of money.
The amount of cash withdraws depends on the basis of the policy you had taken and as wel l the
company who will be issuing it. The main advantage of cash surrender value is that you won't be paying
any tax while withdrawing a certain amount of cash for your policy, unless your policy is not classified as
a modified endowment contract. In MEC, the cash surrender value of life insurance becomes payable,
the withdrawals of the money are considered to be the interest of the policyholder that makes him
payable to the tax of the policy as well.
Most of the cash surrender reduces the death benefits, or it may cause an increase in your premiums,
so that you can enjoy the maximum death benefits. All cash surrender are not always tax -free, if you are
withdrawing cash before the first 15 years of the policy, then it will be subjected to taxation or e lse may
reduce the death benefits. If the above conditions are not met, then it may result in the lapse of the
policy. The other way that people adopt is to go for life settlement, where they sell their policy to get
the maximum value of it.
The Cash surrender value of life insurance for seniors is a beneficial option, if they are going for it after
the age of 60. Some insurance company gives the facility of free-tax at the time of cash surrender value
for the seniors; depending on the type of the policy they have. Otherwise, even the seniors are liable to
pay the tax when they are withdrawing cash from their policy. They would also need to pay a ten
percent penalty charge if they decided to go for such type of withdrawal before the age of 59.5. It is
better to consult your life insurance agent and get to know all the pros and the cons of cash surrender
value of life insurance.
So by now you have understood the basics of cash surrender value of life insurance and if you are
looking for more information on various topics of life policy, I do suggest visiting my personal blog. You
won’t be disappointed at all.

3. Thanking,
Aaron H.
http://secureseniorlifeinsurance.com