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.

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References in periodicals archive

And part of your premium is deposited into a cash value account, which earns interest, with taxes deferred on the accumulated earnings.

Such is life insurance

The online quotation helps employees see how different levels of contributions to their cash value account will grow over time.

Minnesota Life Insurance Co

Premium payments are credited to a cash value account where the money earns tax-deferred interest at a rate set by the company, which may be higher than the minimum rate guaranteed in the policy.

Insurance companies at a glance

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. Policy owners can adjust their premium payments.

Getting down to basics. (Life Insurance)

Your other choice, "cash value" or "permanent" insurance, provides a cash value account in addition to pure insurance.

Where there's a will

The plan is fully secured with a cash value account available to the business for emergencies or opportunities.

Split dollar life insurance: ten ways to solve problems and save taxes

To counteract the fact that the annual risk of mortality increases with age, the insurance company collects extra premium in the early years of the policy and puts it into a cash value account where it earns interest.

Insurance - a comparison to IRA accounts

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