Cash value account

If you have a permanent life insurance policy, part of each premium you pay goes into a tax-deferred account called the cash value account.

You can borrow against the money that accumulates in this account, though any outstanding balance at the time of your death reduces the death benefit your beneficiary receives.

If you cancel or surrender your policy, or if you stop paying the premiums, you are entitled to receive a portion of your cash value account. That amount is your cash surrender value.