Cash value

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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 ?
Ed is an accountant who explains that the most important benefit in our tax code is the tax exclusion for life insurance cash values and death benefits if the policy is established correctly.
Taxing the internal buildup of life insurance cash values on an accrual basis
Variable life insurance cash values are not guaranteed and will fluctuate based on the performance of underlying investment options.
Dulisse says tax-free assets should be withdrawn first, such as Roth IRAs, life insurance cash values or annuities issued before 1982, where principal can be drawn first.
If properly structured, the The life insurance cash values arrangement will avoid the increase year by year and are expense and litigation which available for emergencies and may be involved if the Internal financial opportunities Revenue Service challenges the value of the business for estate tax purposes.
Permanent life insurance cash values can have many business uses.
And don't forget considering alternative to LTC including the use of life insurance cash values, reverse mortgages, self insurance and government programs.
5 /PRNewswire/ -- Billions of dollars of life insurance cash values may be in big trouble, and most consumers don't know it because they don't check their policies like they do their stocks and bonds.
The company's policyholders are protected by the Texas Life, Accident, Health and Hospital Service Guaranty Association up to the dollar limits specified by Texas law -- $200,000 per person for health insurance claims, $300,000 for life insurance death benefits and $100,000 for annuities and life insurance cash values.
The company's policyholders are protected by the Texas Life, Accident, Health, and Hospital Service Guaranty Association up to the dollar limits specified by Texas law -- $200,000 per person for health insurance claims, $300,000 for life insurance death benefits, and $100,000 for annuities and life insurance cash values.
The other coverages limits are $100,000 for disability insurance; $100,000 for annuity cash values; and $100,000 for life insurance cash values, subject to maximum coverage of $300,000 for any one individual under all types of policies.

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