Legal Definition of Cash surrender value:  The value of an insurance policy at any specific time before the policy is due. This amount is calculated according to established rules. The insured who is canceling his insurance is entitled to a certain amount of money, determined by how much premium he has paid in during the life of the policy | Looking for the Legal Definition of Cash Surrender Value? Learn what it is and why it’s important for insurance policyholders. Find out how you can make informed decisions about your insurance coverage and receive cash if you decide to cancel your policy