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It depends on the terms of the policy. Generally, cash value is a term related to the surrender value. If you die under a normal life insurance contract, your death benefit is paid and that's all. Some companies offer a rider that allows payment for the cash value plus the death benefit, but that costs more because you are purchasing insurance for the total of both calculated over a long time.
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∙ 8y ago
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Can the insured who is not the owner get cash value on whole life?
The Inurance policy owner will benafit from the policy it will not go to anyone else.
What is surrender value and cash value?
They are one in the same but the surrender value is the cash value minus surrender charges. Over time the surrender charges go away.
What happens to the cash value when you die?
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.
How do you get back unscheduled personal property after actual cash value has been met?
You would take that cash and go shopping.
What is the value of an antique bearskin lap robe?
From $250,000 upward at least, you need to go get it insured NOW
Can you borrow from your life insurance policy?
If the policy is a term life insurance policy, there is no accumulation of cash value. Upon the death of the insured, the face value of the policy is paid to the beneficiary if the policy is in force at that time. Cash value does accumulate under "permanent" insurance. This is otherwise called whole life, and has various permutations that often go by other names. The common denominator is that part of the premium is applied to the indemnity benefit (akin to term insurance), and another part into may be considered to be the rough equivalent of a "savings account" (but please don't confuse this with a real savings account at a bank). The account balance, called "cash value" accumulates over time. The value increases slowly at first, but over a period of years, as premiums are regularly paid, more quickly. Most all policies allow for loans from the cash value, albeit an interest rate is charged on the loan. The loan does not have to be repaid, but upon the death of the person insured, the loan balance, including accrued interest, is deducted from the indemnity payment. _________________________________________________________________ In the UK, you should be able to take a loan out against an endowment policy if the Insurer allows this. Phone him to check. However, before you do so you should take advice from your Financial Advisor to see if this is the best option for you. There may be better ways to obtain finance at a cheaper rate without penalising your future benefit from the policy.
How much money is insured in the bank?
If a bank is FDIC insured then it would be up to $250,000.00 To find a bank that is insured by FDIC go to the link below
Where do you go to cash in a silver dollar?
go to a coin dealer or the bank. The coin dealer will pay more. the bank will only pay face value.
Where does the book value of an issued bond go on a cash flow statement?
The value of the issued bond for a normal company would be reflect under the heading of Financing Activities.
Is there a Penalty for uninsured driver with insured vehicle?
As far as states go I know in Utah it is the vehicle not the driver that is insured.
If the beneficiary of life insurance policy dies and there was no contingent beneficiary who does the insurance go to?
The death benefit would go to the Estate of the insured. This would create a taxable event and would be part of the estate probate. In some cases as with Fraternal Companies, the death benefit would be paid to the decedents of the beneficiary.
How can you find out if the motorcycle is insured?
Go to the tag office
