What Does Life Insurance Surrender Value Mean? 
Cash surrender value pertains to the asset value or `` living value '' of permanent life insurance policies . Permanent life insurance is designed to pay a death benefit to last a lifetime , regardless of when you die . The premium is higher than term because it has to last longer and build a cash reserve to help keep the premium level . The cash reserve means the insurance company can offer a cash value to the owner that grows over time . At any given point in time , the cash surrender value is the amount that the insurer will pay the owner if the owner cancels the policy . In the first few years , it is not uncommon for that value to be zero . 