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.
Cash value of whole life insurance is referred to as the "Cash Surrender Value". The cash surrender value is money the policyholder is supposed to receive from the insurance company when surrendering the whole life insurance policy with cash value. The cash surrender value amount due is the sum of the cash value stated in the whole life insurance policy minus any surrender charge and any outstanding loans and interest due on the loans.
It is worth whatever the net surrender cash value is, which is cash value minus the surrender charge.
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.
The value accrued at the time of surrender of the policy is called cash surrender value of the policy. Generally, before completion of three year period, no life policy can be surredered and hence question of cash surrender values does not arise.
You will receive the cash value minus the surrender charges, not the face value of the policy.
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.
Some types of life insurance policies accumulate cash value over time. If an insurance policy contract is surrendered before the maturity date, a surrender fee must be paid. Surrender value will be calculated by Cash Value minus Surrender charge.
Term insurance does not gather cash value. Surrender value tangentially correlates with cash value. Therefore, term insurance does not have a surrender value. If payment of premium stops, once the grace period expires, so does coverage.
the insurance company pays the insured the cash value that has accumulated in the policy.............
You owe 50000 you can surrender the cash value of your life insurance. This may result in federal and state income taxes where applicable.