Cash value account

Cash Value Account

An account into which cash is deposited 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 account.

If you have a permanent life insurance policy, part of each premium you pay goes into a tax-deferred account called the cash value account.

You can borrow against the money that accumulates in this account, though any outstanding balance at the time of your death reduces the death benefit your beneficiary receives.

If you cancel or surrender your policy, or if you stop paying the premiums, you are entitled to receive a portion of your cash value account. That amount is your cash surrender value.

References in periodicals archive ?
On-line quotations -- This tool helps employees see how different levels of contributions to their cash value account will grow over time.
The online quotation helps employees see how different levels of contributions to their cash value account will grow over time.
As long as the policy stays in force, the borrowed funds do not need to be repaid, but interest may be charged to the cash value account.
Your other choice, "cash value" or "permanent" insurance, provides a cash value account in addition to pure insurance.
On-line quotations: a tool that helps employees see how different levels of contributions to their cash value account will grow over time;
94 percent of all Universal Life policies in force have cash value account balances of less that $10,000.
The cash value accounts for a 35% premium to Celtic's share price a day ago.