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Answered 2012-06-05 14:45:36

You will receive the cash value minus the surrender charges, not the face value of the policy.

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What is the difference between face value and cash surrender value of life insurance?

Face value typically refers to the death benefit of the policy (i.e. how much your family would receive if you were to die). Cash surrender value is the amount of money that has accumulated (tax deferred) inside the policy and is the amount of money the owner would receive (before taxes) if s/he were to cancel the policy. Cash surrender value is different from plain old "cash value" or "accumulated value" in that most insurance policies have surrender charges for 10 to 20 years that reduce the total "cash value" or "accumulated value" down to the cash SURRENDER value.


Can you surrender a life insurance policy?

yes, we can surrender a life insurance policy. If we surrender the policy means we can surrender by its cashvalue. If we surrender for the entire cashvalue then it is called full surrender. If we surrender for a part of its cash value then it is called partial surrender. Any way the cash value gets reduced. It effects the face amount. so the face amount also gets reduced. Hence no of units gets reduced.


How do you determine the value of an old burial insurance policy from Southern Bankers Insurance Company?

You could submit a claim but that usually means dying first. Short of dying, you could surrender the policy for its surrender value. The surrender value depends on many things but it starts a zero when the policy is bought and grows to the face amount as the policy ages. The hardcopy of the policy should show a face amount but will likely also include a schedule for the surrender value. If the hardcopy of the policy can't be located, a call to the company is in order.


Is there a surrender value to an old life insurance?

If it is an old cash value policy there may be if the premiums were all up to date. Depending on the face value of the policy and the individuals age and health it may be worth more to sell it than to cash it in.


How do you reduce lift insurance policy face value and payment?

You reduce the lift insurance policy face value and payment by considering the basics of the cash value policy basics.


How can I cash in a 53 year old insurance policy from Life and Casualty Insurance Co.?

I did it. Phone the company or its successor. Ask the SURRENDER value and the face value, and the loan value. Ask for the largest of those, and pocket the cash.


The face value of which type of insurance is reduced over the life of the policy-?

The decreasing term insurance has its face value reduced as the policy ages.


What is the definition of face value?

the basic amount a policy is worth, which is printed on the policy


What is the value of a life insurance policy from Metropolitan life insurance taken out in 1924?

This answer will depend on the type of policy that was taken out and if the policy is still "in force". If the policy is a term policy (unlikely), whatever is the death benefit face amount of the policy. If the policy is whole life or universal life policy, the policy may have a cash surrender value and a death benefit value. Meaning that you may be able to simply cash out the policy and get a check prior to death. Or, upon death, the value would be the death benefit face amount plus any unpaid dividends and interest minus any loans that may have been taken out. I am happy to answer more questions or help you with this. Brian Lombardo, CPA, Agent



Cash value of paid in full 20 year juvenile industrial life insurance policy?

The cash value of any policy depends on its face value and the value of the policy at maturity when the policy has been maintained in force. The insurance company issuing the policy will be able to give you the answer you want.


Surrender of Paid-Up Additions?

Dividends from life policies can be used to buy additional face value. After these additions have occurred a policyholder can then surrender these additions in lieu of premium payments, which may pay premiums in full or part, thus reducing the cost to maintain the policy for the owner.


What is face value for life insurance?

Face value is the amount of life insurance that is stated on the front page (declarations) FACE of the policy. You might get paid less than that if you have policy loans. More if it's accidental death. Some policies pay dividends.


How much can a old life insurance pay?

What's the face value of the policy?


If the beneficiary of a term life insurance does not know the benefit amount will the insurance tell you the amount of the policy?

== == == == The life insurance policy will state the face value ( death benefit ) of the policy. However, it may not state the amount that each beneficiary will receive as the number of beneficiaries may have changed since it was issued. Until a claim is paid, the beneficiaries will not know how much they'll receive.


Can you take out a loan on a life insurance policy?

That depends on the life insurance policy. The policy must be one that builds cash value before a loan can be taken. Simply, if the policy is a 'term life policy' it lasts for a defined period - 10 years, 20 years, etc. - and charges a low premium. It doesn't build cash value you can borrow against. 'Whole life policies', on the other hand, have a part of the premium paid set aside for cash value. For this reason, the amount of premium charged for a whole life policy will be higher than the premium charged for a term life policy with the same face value. NOTE: A loan is taken against the cash value of a policy, not the face value ( death benefit ). So if the face value is $10,000 and the cash value is $3,000, the loan would be taken against the $3,000.


If you borrow on the loan value of a whole life policy but never pay it back does the face value of the policy decrease?

If you take out a loan against the cash value of a policy and never pay it back, the full loan value PLUS interest would be deducted from the benefit if it were to pay out.


Does a beneficiary have the right to know the face value of a life insurance policy?

Yes, they have a right to know the face value of a life insurance policy because if they die they could pass the money to people who needs it and they could do better thing to other people



Which of these is an element of term life insurance?

This life insurance policy is worth only the face value.


Does the face amount of endowment insurance double if you are alive at the end of the period?

No. At the end of an endowment policy, the cash value equals the face amount.


Can a viatical settlement firm sell a policy to a third party?

Yes. The company or investor will then become the beneficiary to the policy, pays the premiums and collects the face value of the policy after the original policy holder dies.


If your face amount is 150000 what is your cash value?

You can't tell from Face amount. Check the policy for the cash value schedule. The Insurance Company should send you an annual statement. Call the company.


Can you receive disability for skin cancer surgery on the face and hand?

What kind of Disability are you talking about? SSI, SDI, Individual Policy, Group Policy? What is the insuring clause? How long will you be unable to work?


Is it better to surrender a life insurance policy or take out a loan and then cancel it to get the cash out?

Both options will effectively end the coverage and may incur possible tax issues. The amount you receive in a surrender that is more than the amount you had paid to that point in premium is considered taxable. It would be best to contact the insurance company and discuss what you wish to do and why. Also, depending on your age, health and the face amount of the policy it may be in your best interest to sell it rather than cash it in. The value in selling it if you are eligible is generally greater than the cash value alone. Of course this would incur greater tax penalties. In any event when thinking of eliminating any life po0licy, think carefully!


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