The cash surrender value — also known as the cash value — is the cash amount offered to the policyholder in exchange for part or all of their insurance policy’s value. In cash value life insurance policies, policyholders are provided with a death benefit and a savings component that accumulates with every premium payment. If the owner chooses to terminate their life insurance contract before the end of the term period, they are able to receive the accumulated savings, or cash value, rather than the death benefit. An owner can also borrow from their cash value in the form of a loan, but then has to pay back the money with interest to maintain the full death benefit.