If surrendering midway is equivalent to breach of contract, it is impossible for the insurance company to fully refund the premium charged. Any insurance policy has an "initial cost", that is, the operating cost of the insurance company (such as salesman's salary, leaders' salary at all levels, labor cost, rental cost, etc.). ), as long as the policy has passed the hesitation period, it will be charged. Of course, it is impossible to refund this part of the money when surrendering!
Cash value can also be used as the basis for applying for policy loans. General insurance companies can apply for 80% policy cash value loans.
Cash value can also serve as a buffer. That is to say, if the premium is due and cannot be paid in one lump sum, and the cash value of the policy is greater than the premium payable, you can apply for the cash value as an advance, but you need to pay interest, which is similar to the policy loan, but only pay the premium directly.
If it is dividend insurance, cash value is also the basis of dividend.
When buying insurance, most salesmen don't explain the meaning of cash value, so many people feel cheated when they surrender their insurance. Unlike universal insurance, insurance companies will not force business personnel to explain the meaning of cash value to customers.
I hope the above explanation will help you. I wish you peace and health! !
Further reading: How to buy insurance, which is good, and teach you how to avoid these "pits" of insurance.