A more thorough explanation:

Definition: Policy value refers to the amount of cash that a policyholder can receive upon surrendering or cancelling their insurance policy.

Example: If a policyholder decides to cancel their life insurance policy, they may be entitled to receive the policy value. For instance, if the policy value is $10,000, the policyholder will receive this amount upon cancellation.

Explanation: The policy value is the amount of money that the policyholder can receive if they decide to cancel their insurance policy. This amount is determined by the insurance company and is based on the premiums paid by the policyholder and the length of time the policy has been in force. The example illustrates how a policyholder can receive the policy value upon cancelling their life insurance policy.