Cash Value Life Insurance
Definition of "Cash value life insurance"
Policy that generates a savings element. Cash values are critical to a permanent life insurance policy. The size of a cash value buildup differs substantially from company to company. In many instances there is no correlation between the size of the cash value and premiums paid; in some cases there is an inverse relationship. Everything that the policy owner wishes to do with this policy while living is determined by the size of the cash value. For example, at some future time, a policy owner may wish to convert the cash value to a monthly retirement income. Its size will depend on the amount of the cash value and the attained age of the policy owner.
Popular Insurance Terms
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Recording and presentation of financial statements, such as the annual statement, by the insurance company. Financial reporting statements are used by the State Insurance Commissioner in ...
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Same as term cash surrender value: money the policyowner is entitled to receive from the insurance company upon surrendering a life insurance policy with cash value. The sum is the cash ...
Reduction in a retirement plan's population resulting from the death, disability, and termination of its members. ...
Coverage for damage to a building or its contents due to the weight of these elements. Outdoor property such as patios, swimming pools, and sidewalks are usually excluded. ...
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