Life Insurance

Math and Arithmetic

The Difference Between

# What is the difference between face amount and cash value?

###### Wiki User

###### 2003-10-16 12:06:00

The face value is what your beneficiaries will collect. The cash

value is the excess of your premium payments over the cost of the

insurance. Click here for more about life insurance cash value.

## Related Questions

###### Asked in Insurance, Life Insurance, The Difference Between

### 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.

###### Asked in The Difference Between

### Difference between present value and net present value?

Present value is the result of discounting future amounts
to the present. For example, a cash amount of $10,000 received at
the end of 5 years will have a present value of $6,210 if
the future amount is discounted at 10% compounded annually.
Net present value is the present value of the cash
inflows minus the present value of the cash outflows. For
example, let's assume that an investment of $5,000 today will
result in one cash receipt of $10,000 at the end of 5 years. If the
investor requires a 10% annual return compounded annually, the
net present value of the investment is $1,210. This is the
result of the present value of the cash inflow $6,210 (from above)
minus the present value of the $5,000 cash outflow. (Since the
$5,000 cash outflow occurred at the present time, its present value
is $5,000.)

###### Asked in Insurance, Life Insurance

### What is an indexed life insurance policy?

if you have to paid indexation amount your cash value increase
and amount,allocate and your indexation. but what is the
differences between indexation or non indexation so simply answer
indexation is not your fixed premium amount because the amount is
fluctuation at your maturity you premium amount change your cash
value change because non indexation is a fixed premium amount they
can not be change design your plane after your maturity.