What is the term for the cash amount available to the owner when a life insurance policy is surrendered?

The cash amount available to the owner when a life insurance policy is surrendered is referred to as the "cash surrender value." This term specifically denotes the amount of money that the policyholder will receive after canceling the policy, taking into account any outstanding loans or fees that may be deducted from the total cash value accrued within the policy.

The cash surrender value reflects the policy's accumulated savings component, particularly in permanent life insurance policies, which build cash value over time. This value can be influenced by factors such as the length of time the policy has been active and the premiums paid.

Other terms such as "cash value," "surrender benefit," and "policy value" may relate to similar concepts but do not specifically define the amount available upon surrender of the policy. "Cash value" primarily refers to the total amount of cash accumulation in the policy that could be available for borrowing or withdrawal while still active. "Surrender benefit" is not a standard term used in the insurance industry. "Policy value" can be a broader term, encompassing various types of values associated with the policy, but does not pinpoint the specific amount that is received upon surrender. Thus, "cash surrender value" is the precise term that accurately indicates the cash received upon surrendering