Best Answer

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.

User Avatar

Wiki User

โˆ™ 2006-02-21 19:39:29
This answer is:
User Avatar

Add your answer:

Earn +20 pts
Q: When the cash value accumulation of the life insurance policy equals the face amount what would you say the policy is?
Write your answer...
Related questions

Can you out live a life insurance policy?

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.

Does the face amount of endowment insurance double if you are alive at the end of the period?

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

What limits the amount that a policy owner can borrow from the insurance poicy?

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.

Can the executor get the amount of the life insurance policy?

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

Is there cash value in decreasing term insurance?

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.

What is the difference between a graded life insurance plan and a level life insurance plan?

A graded benefit life insurance plan is offered when the customer has an extensive health issues history. The difference between the graded life insurance and the level life insurance policy is that graded plan will pay less than the face amount of the policy in the first two policy years if the insured dies before the third policy year. Usually in the first two policy years the benefit paid equals the amount of insurance premiums paid plus a %.

Can you borrow money from a universal life insurance policy?

Most Life insurane companines allow you to borrow money from your Universal Life Policy. There will be an interest rate charged, the interest rate will be reflected in your policy under "Loans". You will only be able to borrow against the cash accumulation account. The amount in the account is usually the difference between the cost of insurance, plus expenses and the amount that you have been putting into the policy, plus any earned interest. The more money you pay into the policy above the cost of insurance and expenses, the more you should have in your cash accumulation account. Remember, you determine the amount of the premiums paid into the policy, the amount has to at least meet the minimum premium set by the life ins. company, and cannot exceed the top limit placed by IRS to maintain a life policy's tax benefits.

How do we increase the amount on our policy for life insurance with your company?

You can opt for another policy as increase in amount of a life insurance policy is not allowed, though there is option for reduction in sum insured in few policies.

What does it mean when death benefit is larger than the face value?

It means that the payor paid enough premium into the policy that the accumulation of cash in the policy grew to an amount that exceeds the number shown as the life insurance amount. For example, there is a $50,000 life insurance policy. The payor paid $30,000 into the policy at policy inception and paid nothing else. The $30,000 is credited interest or is invested in the stock market so that the $30,000 grows over time to an amount that exceeds $50,000. If the $30,000 grows to $67,000, the death benefit is $67,000; not $50,000. The "face value" is $50,000.

What is an unmatured life insurance policy?

The life insurance policy has a maturing date that determines the time it takes for a policy to accumulate the amount of money essential for the policy. An unmatured life insurance policy is one that hasn't yet reached the end of its policy.

What is a master insurance policy?

master insurance policy In Marine Policy, one Master or Open policy is issued to the Exporter for a fixed amount. Against each shipment, Insurance Certificate is issued against the Master or Open Marine Policy. When the total amount of the Master policy is exhausted,either the value is enhanced or a separate Master Policy is issued to the exporter.

When you have life insurance does the insurance company pay for the funeral expenses?

No. It pays you only what is the policy maturity/insurance amount

When a life insurance policy is cancelled and the insured selects term nonforfeiture the cash value of the policy will be used to purchase term insurance what happens to the face amount?

face amount reduces and the policy is made for paid-up value

What is a Life insurance average payout?

100% of the amount of the policy...each of which are purchased for a specific amount, or amount of payout.

How does a family term life insurance policy differ from an individual policy?

A family life insurance policy differs from an individual insurance policy by the amount of persons included in the policy. The family option includes a (marriage) partner and probably one or more children. There might also be the option to include pets into the policy depending on the insurance company.

What term is the amount you and your employer pays in exchange for insurance coverage?

The "Premium" is the amounts paid for an insurance policy.

Dose the amount life insurance change after a certain age?

A change in the amount of life insurance provided by your life insurance policy is determined by the coverage you have. A permanent life insurance policy usually provides the same amount of life insurance protection for your entire lifetime, as long as you pay the premiums. A term life insurance policy lasts for a temporary period of time. Usually, term life policies are issued for 1-30 years. A 10 year term life insurance policy provides protection for 10 years. if you outlive your policy term, the coverage expires. A level term life insurance policy provides coverage and premiums that remain the same each year for the entire term of your policy. A decreasing term life insurance policy provides premiums that remain the same each year, but the amount of life insurance decreases each year until the end of your policy term. There are other term life insurance plans that may provide less coverage after a certain age, or your policy term expires after a certain age.

Is there any limit for accident benefit in life insurance?

In life insurance policy, you can have accidental coverage equal to the sum insured amount, by paying extra premia. By this way, you can avail accidental coverage policy in a life insurance policy.

What is the cash value in an insurance policy mean?

The cash value is the amount of money your insurance policy is worth to the owner of the policy if the insurance is cancelled and the policy terminated. The insurance company will mail a check to the to the policy owner upon policy termination or cancellation by request of the owner. I would strongly encourage you to consult a professional in your area before cancelling an existing policy. There may be other options and alternatives to access the value of the policy without cancelling the insurance policy.

What is basic life insurance?

Term insurance without any optional rider is considered to be the most basic type of life insurance. You purchase protection for a certain amount of time, after which the policy terminates. You have a fixed premium that does not change until the end of your term policy. You then have the option to terminate, or convert the term to a permanent form of life insurance. Term Assurance Policy is the basic life insurance policy.This is the cheapest pure life risk plan. On maturity, no amount will be paid to the policy holder. On any eventuality of the policy holder during policy term, sum assured amount will be paid to the nominee.

Does your homeowners insurance policy have to match your flood insurance policy?

There is no requirement, but your mortgage company may require a certain amount of coverage that both policies will have to match.

What is the difference between health insurance policy and Critical illness policy?

A Health Insurance policy is a reimbursement of the medical expenses. Well Critical illness insurance is a benefit policy. Under a benefit policy upon the occurrence of an event, the insurance company pays the policyholder a lump sum amount. Under a Critical Illness policy, if the insured is diagnosed with any critical illness as specified in the policy.

What is a matured endowment though insurance company?

A matured endowment is a life insurance policy where the current cash value has become equal to the face amount of the policy. The policy is mature. So, the insurance company issues the insured a check for the face amount (death benefit) even though the insured is still alive.

The amount of money paid to keep an insurance policy is force is the?

basic premium

What Is a document that is based on the amount of risk taken on a specific outcome?

Insurance policy