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 ?
Cash surrender value, or nonforfeiture value, is the sum of money an insurance company will pay a policyholder if he or she decides to cancel the policy before it expires or before he or she dies.
The CSO tables are smooth mortality tables used for conservative nonforfeiture value calculations for the protection of the insurer (a major concern of insurers and regulators) and do not anticipate extraordinary health changes in individuals but only anticipate aggregate group mortality change characteristics.
com/) bridges insurance and capital markets to provide consumers with a new market-based source of nonforfeiture value.
NONFORFEITURE VALUE also called cash surrender value, is the sum of money an insurance company will pay a policyholder if he or she decides to cancel the policy before it expires or before he or she dies.
NONFORFEITURE VALUE, also called cash surrender value is me sum of money an insurance company wm pay a policyholder he or she decides to cancel the policy before it expires or before he or she dies.
NONFORFEITURE VALUE, also called cash surrender value, is the sum of money an insurance company will pay a policyholder if he or she decides to cancel the policy before it expires or before he or she dies.
If the rate of termination is high enough, insurers may be forced to liquidate some assets to pay nonforfeiture values to the surrendering policyholders.
Having the benefit of companies' annual statements that showed the amounts of life policy reserves, Wright was able to advise policyholders about their policy values even before nonforfeiture values were first required in 1860.
Surrender: Return for cancellation of a life insurance or annuity policy to an insurer for its cash value or other nonforfeiture values.
Now, as then, fair nonforfeiture values continue to align the interests of the insured and the insurer.