Life Insurance

When the cash value accumulation of the life insurance policy equals the face amount what would you say the policy is?


Top Answer
User Avatar
Wiki User
2006-02-21 19:39:29
2006-02-21 19:39:29

Matured. That and a good plan. You can stop paying now. Take the proceeds in cash and buy a Single Premium Whole Life (if you are insurable. What does that do for you??? Say you have a $10,000 whole life plan worth $10,000. You take that and dump it all into a SPWL which is now worth maybe $15,000 or $20,000 death benefit depending on your age. Also, you owe nothing more in premiums and you can get at the cash value if you need to! The death benefit will continue to increase as will the cash value over time. It's a no-brainer if done properly.


Related Questions

User Avatar

Yes, you can out live your Insurance Policy. When the amount of the premium paid equals the face amount of the policy (the death benefit), the policy matures and you get all your money back.

User Avatar

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

User Avatar

the limit of a loan against the policy is the amount of net cash value you have on the life insurance policy. Up to 75% of the paid up value of the life insurance policy, irrespective of the sum insured amount.

User Avatar

NO.. unless the policy does not have nomination. Only nominee will get the proceeds of life insurance policy.

User Avatar

Decreasing term life insurance does not usually have any cash value. Decreasing term life insurance is life insurance coverage in which the face amount of a term life insurance policy declines by a certain specified amount over a specific number of years. For example, the initial face amount of coverage of a $200,000 decreasing term life insurance policy decreases by $20,000 each year, until after 10 years the face value of the policy equals zero. The premium does not decrease over the term of the policy.

Copyright © 2020 Multiply Media, LLC. All Rights Reserved. The material on this site can not be reproduced, distributed, transmitted, cached or otherwise used, except with prior written permission of Multiply.