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Cash value of a policy is the value or worth of the policy in the local currency, if surrendered immediately.
Can I get the answer on line, or do i HAVE to call in? Where can i GET the cash value for my policy?
If your policy has a cash value associated with it you can get money for surrendering the policy. Term Life has no cash value, but a whole life or universal life policy may have a cash value in it. That depends on what type of policy it is, how long it has been in force, and assuming the payments have been made.
Typically it is called "Net Cash Surrender Value". This is the amount of cash value in the policy accumulation account minus any outstanding loans etc. But it is typically referred to as "Net surrender Value" or "Net Cash Surrender Value". Get a good agent and he can explain.
Term insurance does not build any cash value until it is converted into a type of permanent product that does - whole life, indexed universal life, current assumption, variable universal life.
Cash value of a policy is the value or worth of the policy in the local currency, if surrendered immediately.
Can I get the answer on line, or do i HAVE to call in? Where can i GET the cash value for my policy?
no there is no cash value in a term insurance policy
If your policy has a cash value associated with it you can get money for surrendering the policy. Term Life has no cash value, but a whole life or universal life policy may have a cash value in it. That depends on what type of policy it is, how long it has been in force, and assuming the payments have been made.
$447,879.32
Typically it is called "Net Cash Surrender Value". This is the amount of cash value in the policy accumulation account minus any outstanding loans etc. But it is typically referred to as "Net surrender Value" or "Net Cash Surrender Value". Get a good agent and he can explain.
Term insurance does not build any cash value until it is converted into a type of permanent product that does - whole life, indexed universal life, current assumption, variable universal life.
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.
Cash value is a savings element of whole life insurance. It is independent of the benefit amount and its growth is based on how much you have paid into the policy. You can access this money in the form of a loan while still keeping the policy, or if you were to cancel the policy you would receive a check for the cash value. If you would like to know how much cash value is in your policy you can call your ins. company or check the "schedule page" of your policy where there is usually a breakdown of how cash value will accumulate over time (depending on the type of policy). It usually takes several years for cash value to begin accumulating on an average adult policy.
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.
A life insurance policy may have cash value if it is a "whole life insurance policy". This is a kind of life insurance, distinguished from "term" life insurance, that accumulates cash value for the period that it is in force and premiums are paid. Each premium paid goes to pay the cost of "indemnity" (the death benefit), the administrative costs incurred by the insurer, with all or a portion of the remainder going into the cash value. The cash value element of the policy is SOMEWHAT like a savings account within the policy. It grows slowly at first but faster as the policy matures. When a sufficient amount of cash value has accumulated, policy loans from the cash value are usually allowed per the terms of the policy. The loans bear interest at a rate provided for by the policy. Term life insurance does not accumulate cash value.
The cash value of something is the value before taxes. Net or Netto cash value is after taxes.