Cash surrender value (CSV) is the amount you can receive if you terminate a permanent life insurance policy. On personal balance sheets, CSV is typically an asset; on corporate balance sheets, classification depends on timing and intent. If the policy will be surrendered within one year or the operating cycle, whichever is longer, the CSV is current; otherwise, it is non-current. This distinction follows from accounting standards that separate assets by liquidity and affects key financial ratios, borrowing capacity, and tax reporting. The following explains how to determine the classification, what policy features influence CSV, and how companies and individuals report it.
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