surrendered cost

  • A policyholder’s net cash outlay with respect to a surrendered policy. It is equal to the sum of all premiums paid, reduced by the sum of all dividends received and further reduced by the cash value of the policy at date of surrender.

    Internal Revenue Service 1

1Internal Revenue Service, Internal Revenue Manual 4.42.6 Glossary, http://­­irm/­part4/­irm_04-042-006.html (last accessed Dec. 22, 2009).