What Does Life Insurance Cash Surrender Value Mean? 
The cash surrender value of a life insurance policy is the value you would receive before any taxes if you cashed in or surrendered the policy . Typically cash surrender value is generated in whole life and universal life policies . A build up of a cash reserve is necessary for level premium insurance to work . In Canada , you can attract taxation if 1 . You surrender a policy and the cash level exceeds the adjusted cost base of the policy , 2 . Borrow and the amount borrowed exceeds the adjustment cost base of the policy 3 . Transfer ownership -LRB- in most cases -RRB- Alternatively , if you wanted to access the cash value you could borrow for a bank using the policy as collateral . I suggest you contact a local insurance broker for assistance . If you have further questions , or feel that I could be of assistance , please do not hesitate to contact me . If you would like to work with a local life insurance broker , you could start with a Google search . For example , if you search for : life insurance broker Halifax or life insurance agent Halifax , my name , along with several others , will come up . You can use the same method to find a life insurance broker in your community . 