Terminology - Cash Value

Cash Value

Also known as Cash Surrender Value or Reserve.

An estimated value which the insured will receive, before certain adjustments, if he or she chooses to surrender a policy after a period of time. This only applies to participating policies.

For example, Mr A buys a participating whole life policy with a sum assured of $100,000 with an annual premium amount of $1,500. After 10 years, he chooses to surrender the policy. He receives $10,000 in return.

Please note that all these figures are for illustrative purposes only.