Advanced English Dialogue for Business – Cash surrender value

Listen to a Business English Dialogue about Cash surrender value

Keith: Hey Leah, have you ever heard of cash surrender value?

Leah: Hi Keith. Yes, I have. Cash surrender value is the amount of money an insurance policyholder is entitled to receive if they cancel their policy before it matures.

Keith: That’s correct. It’s the cash value of the policy that’s available for withdrawal or surrender.

Leah: Does the cash surrender value increase over time?

Keith: Yes, Leah. Typically, the cash surrender value grows over time as premiums are paid and the policy accumulates cash value.

Leah: So, it’s like a savings component within the insurance policy?

Keith: Exactly. The cash surrender value serves as a form of savings that policyholders can access if needed.

Leah: Is there a difference between the cash surrender value and the face value of the policy?

Keith: Yes, there is. The face value is the amount the policyholder’s beneficiaries receive upon the policyholder’s death, whereas the cash surrender value is the amount the policyholder receives if they cancel the policy before it matures.

Leah: I see. So, the cash surrender value provides some flexibility for policyholders.

Keith: That’s right, Leah. It can serve as a source of funds in case of emergencies or if the policyholder decides to terminate the policy.

Leah: Thanks for explaining, Keith.

Keith: No problem, Leah. If you have any more questions about insurance or financial matters, feel free to ask!