The term "cash value" refers to the amount of money that an insurance policy would pay out if it were canceled or surrendered today. It is a measure of how much liquidity or convertibility there is in a life insurance policy, annuity contract, or other cash-saving vehicle. In essence, it represents the net amount of money that an individual would receive upon redeeming their policy or withdrawing from it. The cash value can fluctuate over time based on various factors such as interest rates, fees and charges, and the performance of investments held within the policy. It is important to note that the cash value does not represent the total amount of money an individual would receive from their insurance policy if they were to pass away or surrender it at a later date; rather, it represents the immediate liquidation value of the policy in its current state.