What is surrender value?
Also known as: Cash surrender value
Definition
Educational information only. Last reviewed August 25, 2026.
How it works in Canada
Surrender values are commonly low or nil in the first several policy years. Surrendering may create a taxable policy gain where the amount received exceeds the policy's adjusted cost basis, and the coverage ends permanently.
Example
A policy with $30,000 of cash value, a $2,000 surrender charge and a $5,000 loan would pay approximately $23,000 on surrender, before any tax.
Learn more
Written and reviewed by CanadaGFI.ca Editorial Team
Licensed insurance and financial professionals contributing to CanadaGFI.ca
Published and last reviewed August 25, 2026. Read our editorial policy and disclosures.
This page is educational information about Canadian financial concepts. It is not personalized financial, tax, insurance or legal advice, and it does not consider your individual circumstances. Product availability, eligibility, pricing and tax treatment depend on the provider, your situation and current Canadian rules. Speak with a professional licensed in your province before acting.
A 30 minutes can shape your next 30 years.
Book a complimentary consultation with a licensed advisor from our independent GFI Canada Agent team. Insurance and financial products are offered through appropriately licensed advisors.