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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

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.

Dictionary of Financial Terms. Copyright © 2008 Lightbulb Press, Inc. All Rights Reserved.
References in periodicals archive ?
Gain in the policy is determined by subtracting the adjusted premium from the policy cash value. In single premium policies, the adjusted premium is generally simply the initial premium paid.
Nebraska, doubtless as a result of Olson, now states in its homeowners' special provisions that, "In our determination of the actual cash value of covered property at the time of loss, an adjustment will be made for factors such as depreciation, deterioration, and/or obsolescence."
Although interest paid (43) on the policy's borrowed cash value may be deductible under Sec.
In fact, everything else being equal, the policy with the lowest possible cash value early on is the most attractive, if there is no need to tap the cash value in the foreseeable future.
Notice 2001-10 has little impact on traditional split-dollar arrangements where the employer is entitled to the entire cash value. After 2003, employees must use table 2001 or the insurer's one-year term rates under the new restrictions, to value the death benefit protection received.
After inspecting the storm damage, American Family provided Henn with a written estimate that explained the calculations for replacement cost value, actual cash value, and depreciation for the claim.
Under section 2051(b)(2) of the California Insurance Code, "actual cash value is the amount it would cost the insured to repair, rebuild, or replace the item lost or injured less a fair and reasonable deduction for physical depreciation based on its condition at the time of the loss."
Each test regulates the death benefit relative to the policy account value, also known as the cash value, although the relationship varies by test.
Because the policy has a floor, consumers will not lose cash value if the index goes down or has a negative performance.
The Allemons' Milford Road property was originally assessed as having a true cash value of $153,840 for tax year 2012.
As long as premium payments continue, the cash value on a child's life policy has a guaranteed, predictable rate of return.
I have been selling life insurance since January 22, 1973, and this truly is the greatest time to sell cash value life insurance.