What Is Guaranteed Cash Value In Life Insurance? 
In order to meet its promise to pay the death benefit in exchange for level premium payments over the life of the insured , the company must accumulate money because the actual cost of insurance for a given year will start to exceed the premium . This money is guaranteed in the contract and is known as the cash surrender value . The company will give you the cash or allow you to use it in several creative ways in exchange for a release from their promise to pay the death benefit regardless of when it occurs . 