It is the value or total of cash accumulating in the cash value account
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.
It is the value or total of cash accumulating in the cash value account
Whole life
One of the things that you can do is to contact the customer service department of the insurer. Doing so can give you the current cash value, which is based upon the actual return on the company's investments, and which is a large part upon which the growth of cash value is based. You should also review the policy itself, ssuming that it is a whole life policy (which is the only type on which cash value accumulates). One or more pages of the policy, typically toward the front of the policy, will be entitled "Table of Cash Value" or words of similar import. It will incicate the projected (not guaranteed) accumulation of cash value, and the current total, according to how long the policy has been in force. Keep in mind that if you ceased making premium payments for a period of time, the policy may have been "kept alive" by having premiums deducted from cash value. If that happened, the actual cash value at a given point in time may be less than that shown on the table.
The cash value of something is the value before taxes. Net or Netto cash value is after taxes.
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.
Yes, the types of permanent insurance policies - whole life and universal life - are designed to build cash value. There are permanent life insurance policies that offer guarantees over cash value accumulation, therefore staying in force until age 105, 115, 121, etc - and build very little cash value. The cost for this type of permanent insurance is often much lower than those that will build significant cash value.
It is the value or total of cash accumulating in the cash value account
Whole life
One of the things that you can do is to contact the customer service department of the insurer. Doing so can give you the current cash value, which is based upon the actual return on the company's investments, and which is a large part upon which the growth of cash value is based. You should also review the policy itself, ssuming that it is a whole life policy (which is the only type on which cash value accumulates). One or more pages of the policy, typically toward the front of the policy, will be entitled "Table of Cash Value" or words of similar import. It will incicate the projected (not guaranteed) accumulation of cash value, and the current total, according to how long the policy has been in force. Keep in mind that if you ceased making premium payments for a period of time, the policy may have been "kept alive" by having premiums deducted from cash value. If that happened, the actual cash value at a given point in time may be less than that shown on the table.
The cash value of something is the value before taxes. Net or Netto cash value is after taxes.
Protection (term insurance), Accumulation (cash value insurance) and Distribution. You are making sure you protect your investments, family etc... You are making sure you have money to retire in the future with a cash building life insurance such as custom whole life, or whole life.
Fn = P (1 + r )n where F n = accumulation or future value P = one-time investment today r = interest rate per period n = number of periods from today
Assuming that you are speaking of whole life insurance. the answer depends upon the rate of accumulation of cash value. Cash value is the "savings" element that is built into a whole life policy. That is, a portion of each premium is applied to the cost of the insurance protection, and a portion is credited to cash value. Depending upon the kind of whole life policy that is involved, the "savings" portion of the premium can be invested in a mutual fund or some other sort of investment vehicle. Therefore, the growth of that amount can depend upon market forces such as the stock market. If the market flourishes, cash value can increase quickly; if it does not, cash value will suffer. Other kinds of whole life policies exist that promise only a minimum cash value accumulation that are specified in the policy. In those, cash value usually accumulates more slowly. The answer also depends upon whether premiums were paid all during the life of the policy. Again, using a whole life policy as an example, it may provide that if premium payments stop, the insurance company may keep the policy "alive" by taking future premium payments from the cash value. This would reduce the cash value proportionately, depending upon for how log it is done. If you are referring to term insurance, no cash value accumulates at all. It provides a death benefit only, which is payable when the insured dies. The premiums paid are lower than those for whole life insurance because there is no savings element built into the policy.
No. Surrender charges only apply when surrendering a life insurance policy which includes cash value accumulation, and even then only during the surrender charge period. Term life insurance policies have no cash value and can be canceled at any time by simply not paying additional premiums.
Given I<T, the accumulation factor A(I,T) is the accumulation value at the time T of one unit of money invested at time I. So for compound interest A(I,T)= (1+i)^(T-I).
Can I get the answer on line, or do i HAVE to call in? Where can i GET the cash value for my policy?