The cash value is the amount of money your insurance policy is worth to the owner of the policy if the insurance is cancelled and the policy terminated. The insurance company will mail a check to the to the policy owner upon policy termination or cancellation by request of the owner. I would strongly encourage you to consult a professional in your area before cancelling an existing policy. There may be other options and alternatives to access the value of the policy without cancelling the insurance policy.
It means you want to cancel the policy. If there is cash value in the policy, surrender charges will be deducted from the cash value and you will get the remaining balance.
The value accrued at the time of surrender of the policy is called cash surrender value of the policy. Generally, before completion of three year period, no life policy can be surredered and hence question of cash surrender values does not arise.
Cash value is a characteristic of whole life insurance (sometimes called "permanent insurance"). It does not exist in the context of term insurance. With a whole life policy, a portion of the periodic premium is used to pay the amount needed to cover the death benefit (determined by insurance actuaries), and a portion of the premium is credited to the cash value. VERY broadly, you might think of cash value as an element of savings that is built in to the insurance policy, but do not draw a parallel to a savings account as such. Cash value accumulates slowly, and is generally de minimus in the early years of the policy. However, the cash value is a store of value that can be accessed by the insured, according to the terms of the policy, once a certain amount of time has passed or an amount of cash value has accumulated. For example, the insured can usually take a "policy loan" against the accumulated cash value. Typically, the interest rate charged by the insurer for such a policy loan is lower than other sources of loans. Interest will accrue on the loan, and if the loan and interest is not fully repaid by the time the insured dies, the balance of the loan will be deducted from death proceeds. One of the reasons that whole life insurance is sometimes called "permanent insurance" is because there comes a point in the life of the policy when the cash value can support the future premiums and the insured does not have to pay further premiums. Stated otherwise, the policy becomes "fully paid-up" at a point in time specified in the policy. In contrast, with term insurance, the insured is, in a sense ,"renting" the death protection; it remains in force only as long as the periodic premium is paid. Further, if the insured does not die while the policy is in force (often anywhere from 10-30 years depending upon the duration selected by the insured at the inception of the policy and presuming that premiums continue to be paid), coverage terminates, no benefits are paid, and no "value" (such as "cash value") accrues. This does not mean that term insurance is not worthwhile. It is generally less costly than whole life, and therefore, a person may load up on term insurance when they are young and, for example, raising and educating children. This would be done to ensure that sufficient money is available to finance child rearing expenses upon a parent's premature death.
Google the types of life insurance first. You need to learn a little about life insurance. The terms you are using and spelling are weird. Most people use cash value insurance to describe a type of life insurance.I do not really understand what you mean but, from my experience, I can only guess that by life insurance you mean term life insurance. If that is the case, then, in most situations, term life insurance has lower premiums than cash value life insurance (whole life, universal life...). Be well! mcdlife.com
Not sure what you mean credit? Some allow you to take out a loan or actually cash in the policy. Contact the issueing agent.
It means you want to cancel the policy. If there is cash value in the policy, surrender charges will be deducted from the cash value and you will get the remaining balance.
The value accrued at the time of surrender of the policy is called cash surrender value of the policy. Generally, before completion of three year period, no life policy can be surredered and hence question of cash surrender values does not arise.
What do you mean "Sell" the life insurance policy? Once it is back in force and you are the owner, you can cash it in at any time if there is in fact a cash value. I guess you would have to better define what you mean by selling it.
If you mean variable universal life, then if you cancelled it you would receive any cash value that is in the policy. The cash value is most likely not equal to what you have paid in, but it might be. If you call your insurance company they will tell you what your cash value is as long as you don't live in New York.
Pretty much any permanetn life policy can do that but you probably mean a Whole Life plan where the cash value equals the death benefit usually at age 100. 4lifeguild
Cash value is a characteristic of whole life insurance (sometimes called "permanent insurance"). It does not exist in the context of term insurance. With a whole life policy, a portion of the periodic premium is used to pay the amount needed to cover the death benefit (determined by insurance actuaries), and a portion of the premium is credited to the cash value. VERY broadly, you might think of cash value as an element of savings that is built in to the insurance policy, but do not draw a parallel to a savings account as such. Cash value accumulates slowly, and is generally de minimus in the early years of the policy. However, the cash value is a store of value that can be accessed by the insured, according to the terms of the policy, once a certain amount of time has passed or an amount of cash value has accumulated. For example, the insured can usually take a "policy loan" against the accumulated cash value. Typically, the interest rate charged by the insurer for such a policy loan is lower than other sources of loans. Interest will accrue on the loan, and if the loan and interest is not fully repaid by the time the insured dies, the balance of the loan will be deducted from death proceeds. One of the reasons that whole life insurance is sometimes called "permanent insurance" is because there comes a point in the life of the policy when the cash value can support the future premiums and the insured does not have to pay further premiums. Stated otherwise, the policy becomes "fully paid-up" at a point in time specified in the policy. In contrast, with term insurance, the insured is, in a sense ,"renting" the death protection; it remains in force only as long as the periodic premium is paid. Further, if the insured does not die while the policy is in force (often anywhere from 10-30 years depending upon the duration selected by the insured at the inception of the policy and presuming that premiums continue to be paid), coverage terminates, no benefits are paid, and no "value" (such as "cash value") accrues. This does not mean that term insurance is not worthwhile. It is generally less costly than whole life, and therefore, a person may load up on term insurance when they are young and, for example, raising and educating children. This would be done to ensure that sufficient money is available to finance child rearing expenses upon a parent's premature death.
Google the types of life insurance first. You need to learn a little about life insurance. The terms you are using and spelling are weird. Most people use cash value insurance to describe a type of life insurance.I do not really understand what you mean but, from my experience, I can only guess that by life insurance you mean term life insurance. If that is the case, then, in most situations, term life insurance has lower premiums than cash value life insurance (whole life, universal life...). Be well! mcdlife.com
If you mean, can you use an insurance policy itself to pay for something, that would be unusual, although you can make any kind of deal that you want, if the other party agrees. Some kinds of insurance policies have cash value and can be cashed in even while the insured person is still alive; these are called "whole life" policies, as distinct from term policies. Cash it in, then spend the cash, however you like. Otherwise, the insurance policy will eventually pay a death benefit. That may, of course, be too late to be useful to you, especially if you are the insured. You can't spend money after you die.
Not sure what you mean credit? Some allow you to take out a loan or actually cash in the policy. Contact the issueing agent.
The cash value in any life insurance policy does not belong to the owner of the policy. The cash value is an asset belonging to the insurance company which they will use to pay the claim, which will surely come due, when the insured finally dies. Now if the owner of the policy would relieve the insurance company of the obligation of paying the claim, by cancelling the policy or lapsing the policy, the cash value in the policy is no longer needed by the insurance company, so they will give it to the owner of the policy under the terms of the policy's "non-forfeiture" clause. People often ask "If that's my cash value, why don't I get it when I die in addition to the insurance benefit?" There's two reasons. First, you're dead and can't cash a check. Second, it's NOT your cash value. It's just easier for the agent to pretend that it is. Don't worry, though. You can have it if you take the company off the hook. That's only fair. Well it depends on the type of "Cash Value" life insurance a person has. If you have a Universal Life policy then there is a greater than not that you will lose the cash value (savings, accumelation account, etc.). It really depends on the OPTION that was picked (done usually by the agent)? Sometimes known as Option 1 or 2, A or B which means what will be explained in the policy itself. The insurance companies that sell these types as well as Whole Life, Variable Life, Variable Universal Life (also known as V.U.L.) make it really confusing for the unsuspecting consumer to easly understand but I'll try to explain it to you... The two OPTIONS offered are there based on wheather or not you will receive the cash value. It's the wording that makes you want to scream, if you look in the table of contents you'll find "Policy Proceeds" or "Death Benefit Options", once there you'll read something like this... "Upon proof of death of the insured, the benefit under Option 1 (or A) is the greatest of:" 1) The face amount; or2) The accumulation account value on the insured's death. under Option 2 (or B), the death benefit is greater of: 1) The face amount plus the accumulation account valueon the date of the insured's death; or2) The accumulation account value multiplied by the applicable percentage from the table of Death Benefit Percentages shown below." You see what I mean, most people don't read their policies and when they start I'm sure they get dizzy on account of the way it is written, and don't think it was by accident either. I believe that policies are designed that way on purpose to discourage anyone from just picking it up and reading it. That's why in the front of the policy is says "This is a contract, PLEASE read it carefully." what a joke!!! In any case, I say Buy Term and Invest the Difference" like my wife and I have. You won't be sorry!!! If you want me to reffer you to someone go ahead and email me, I'll be glad to help out and also THANKS to FaqFarm for the opportunity to respond. I welcome any comments or views, just don't think I'll automatically agree, I AM VERY knowledgable about life insurance and the "scams" comapnies and their agents pull against American Families. Thanks Again... MrTermite:) With almost all cash value life insurance policies, you have access to the cash when you are alive. If you were to die, the company keeps the cash value and pays your beneficiaries out the death benefit.
It means that the payor paid enough premium into the policy that the accumulation of cash in the policy grew to an amount that exceeds the number shown as the life insurance amount. For example, there is a $50,000 life insurance policy. The payor paid $30,000 into the policy at policy inception and paid nothing else. The $30,000 is credited interest or is invested in the stock market so that the $30,000 grows over time to an amount that exceeds $50,000. If the $30,000 grows to $67,000, the death benefit is $67,000; not $50,000. The "face value" is $50,000.
Viatical settlements, or life settlements, are done when people have a terminal illness. In such a case, the person will sell their life insurance policy to obtain ready to use cash.