The cash value and surrender value on a life insurance policy may differ because of

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Surrender value is the amount payable to the policyholder when they surrender their policy before its maturity date. This value can be lower than the cash value due to surrender charges, which are fees deducted by the insurance company to cover expenses such as commissions and administration. Dividends and accidental death benefits may affect the policy's cash value, but they do not necessarily cause a difference between the cash value and surrender value. Improved survival probabilities may result in higher cash values, but they do not affect the surrender value directly.

The Cash Value and Surrender Value on a Life Insurance