An enhanced cash surrender value option is a limited-time "buyout" offer from your life insurance company that is higher than the life insurance policy's cash surrender value. This means that you can surrender your policy and receive a lump sum payment that is more than the amount of money you have already paid into the policy.

The enhanced cash surrender value option is typically offered to policyholders who are nearing the end of their policy terms or who have accumulated a significant amount of cash value in their policy. Life insurance companies that are offering enhanced cash surrender value options include Lincoln Financial Group and John Hancock Life Insurance Company.

It's important for policy owners to be aware that surrendering a life insurance policy means that the policy will no longer be in force. This means that the beneficiaries will not receive any benefit in the future since the policy will be forfeited in exchange for the enhanced cash surrender value payment to the policy owner.

Understand Cash Surrender Value

Cash surrender value is the amount of money that a life insurance company will pay you if you surrender your policy before it matures. The cash surrender value is based on the premiums you have paid and the amount of interest that has accumulated on your policy.

The cash surrender value of a life insurance policy can be used for a variety of purposes, such as paying for college, buying a car, or paying off debt. However, it's important to note that surrendering a life insurance policy will also mean that you will no longer have the death benefit protection that the policy provides.

Cash Surrender Value Key Take Away

  • Only available in permanent life insurance policies
  • Amount varies depending on policy type, premiums paid, and interest
  • Typically lower than premiums paid, especially in early years
  • Surrender charges may apply

If you are considering surrendering your life insurance policy, weigh the pros and cons carefully.


Welcome Funds is a professional life settlement broker that helps life insurance consumers sell a life insurance policy in the secondary market. This service is called a life settlement. Selling your life insurance policy may be a better alternative to surrendering your policy because you may be able to sell it for a much higher price than is offered by the life insurance company. It’s our job to represent the policy owner and negotiate with multiple buyers in order to secure the highest price available for the sale of the life insurance policy. We've negotiated over 35,000 life settlement offers and provided more than $1 Billion in sales proceeds to our clients.

  • It's fast, easy and FREE to determine eligibility
  • There is no obligation to accept an offer
  • Our consultation and qualification process is completely confidential

Complete our free Life Settlement Qualifier or call us toll-free at 877.227.4484 to speak with a client care advocate.

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