How do you find out about your policy what its worth now?

Answer 1

There are 2 main types of life insurance policies, although both types have certain variants that add flexibility if selected.

The first main type is "term life insurance". It is purchased in a stated amount, altho sometimes there is an option to buy additional amounts at various life stages or ages. If it remains in force at the time of death, the face amount originally purchased, plus any incremental amounts that have been purchased is/are paid as the death benefit. This kind of insurance remains in force as long as the required premium is paid. If the premium is not paid, the policy lapses, and unless reinstated in some way, no benefits are payable at the time of death. Therefore, in direct answer to the question, as long as premiums have been paid until now, the policy is "worth" its face value, but benefits are not payable until death.

The second main type is "whole life life insurance". This differs from term in that part of the premium that is paid is applied to the death benefit (you might consider this to be similar to the premium for a term policy), another part of the premium is applied to a savings element built into the policy. This kind of life insurance is more costly than straight term life insurance because of the savings element. Stated otherwise, whole life insurance accumulates "cash value", which is what the savings element is called. The cash value accumulates at a minimum rate guaranteed in the policy, but it may also be more, based upon the investment returns realized by the insurance company.

In the case of whole life insurance, when the policy is issued, you will receive a schedule showing the growth of the cash value at the guaranteed rate. The amount will increase each year that the policy remains in force (that premiums are paid). If you do not have that schedule, you may call the insurance company or your agent for specifics; identify yourself by name and policy number, and you should be able to get a precise number representing the current value. Keep in mind, though, that if the policy has accumulated cash value, but if you have missed one or more premium payments, the insurance company may have debited the cash value for those missed premiums in order to keep the policy in force. If that has happened, the amount that the policy is "worth" may be somewhat less than you anticipated.