Cash value

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Related to Cash value: cash surrender value, Cash Value Added

Cash Value

The amount of cash that becomes available to an insured person upon the cancellation of his/her insurance policy. Most often, this applies to the savings portion of a canceled whole life policy. This value is considered an asset and can be borrowed against or used as collateral. It may also be called a cash surrender value or a surrender value.

Cash value.

Cash value is the amount that an account is worth at any given time.

For example, the cash value of your 401(k) or IRA is what the account is worth at the end of a period, such as the end of a business day, or at the end of the plan year, often December 31.

The cash value of an insurance policy is the amount the insurer will pay you, based on your policy's cash reserve, if you cancel your policy. The cash value is the difference between the amount you paid in premiums and the actual cost of insurance plus other expenses.

References in periodicals archive ?
Why leave your family the $100,000 you have in a money market, when you could leave them $200,000 or more from a cash value life insurance policy that pays similarly to that money market?
Never opt for cash value insurance without doing a lot of homework.
An Allstate claim adjuster calculated the actual cash value of the property as $113,000, including approximately $158,000 to replace the fire-damaged items minus depreciation.
The benefit of using life insurance as a supplemental source of retirement income is that the cash value grows on a tax-deferred basis and, subject to specific tax laws, the client may take out tax-free loans and withdrawals from the cash value (as long as the policy is not a MEC).
Biders such as accelerated death benefits allow terminally or chronically ill policyholders to get cash value out faster.
Indexed policies are a newer form of permanent cash value life insurance with available downside protection.
With the value of retirement accounts down, permanent life insurance policies that build cash value may be a way to add stability to a financial portfolio and accumulate funds over the long-term.
This can be a great way to create an additional tax-free death benefit while guaranteeing cash value growth that often continues to accumulate beyond the total amount of the premium paid into the policy--hence, providing a leveraged death benefit while maintaining access to the cash.
More individuals are utilizing the cash value component of their whole life insurance policy as banks tighten their lending practices
Mitt Romney, Amorello approved a change in the policy to allow nonunion employees to take 50 percent of the cash value of their sick time banks, whether they retired, were terminated or resigned.
13, 2004, the rules permit the use of values that should be readily available from insurance companies, because the cash value is an amount that, in the case of a flexible insurance contract, is generally reported in policyholder annual statements and, in the case of traditional insurance contracts, is fixed at issue and provided in the insurance contract.