If your permanent life insurance policy features a cash value savings component, you may be able use the cash value in a few ways, such as a source of loan or to pay your life insurance policy premiums. The cash value of an insurance contract, also called the cash surrender value or surrender value, is the cash amount offered to the policy owner by the issuing insurance company if you cancel or surrender (meaning voluntarily terminate) your permanent life insurance policy. If you've borrowed against the policy, any outstanding loan amount will be subtracted from the cash value.