How To Account For Cash Surrender Value Of Life Insurance? 
The cash surrender value is the amount the policyholder would receive if the policy was cashed in . This amount in shown on the balance sheet under Investments , Long Term Assets or Other Assets . As the company pays a premium , part is expense and part applies to cash surrender value . The difference between the premium paid and the increase in cash surrender value represents an expense . If you have further questions , or feel that I could be of assistance , please do not hesitate to contact me . 