Cash Surrender Value
Cash Surrender Value means:
the money a policyowner is entitled to receive from an insurance company upon surrendering a life insurance policy with cash value. The sum is the cash value stated in the policy minus a surrender charge and any outstanding loans and interest thereon. Increases in cash surrender value are not taxable income, nor is the cash value received upon surrender of a policy taxable income. Some taxpayers attempt to exploit this tax exemption by treating a life insurance policy as though it were a savings account.
See Tax exemption and Tax exemption.
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