ECONOMICS

Detailed explanation-1: -The difference between cash value and surrender value is that cash value is the amount saved in the policy, and cash surrender value is how much you’ll get if you cancel the policy, less any outstanding debts and surrender charges.

Detailed explanation-2: -The cash surrender value is the amount you can receive when you cancel your insurance. It is possible, however, to benefit from the cash surrender value without forfeiting your insurance.

Detailed explanation-3: -Cash value is a savings component typically included in permanent life insurance policies. Depending on your particular policy, the cash value can grow at a fixed or variable interest rate over time. You can borrow against your policy’s cash value in the form of a life insurance loan.

Detailed explanation-4: -Universal life insurance is also referred to as “flexible premium adjustable life insurance.” It features a savings element (cash value) that grows on a tax-deferred basis. The insurer invests a portion of your premiums. The return on the investment is credited to your policy tax-deferred.