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
Coverage for the owner of a business. When a proprietor dies, debts of the business become the debts of the estate since in this circumstance the law recognizes business and personal assets ...
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Interest earned on dividends from a participating life insurance policy left on deposit with the insurance company and subject to taxation. ...
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Individual or other entity who owns an insurance policy. Synonymous with policyowner. ...
Deductible eliminated through the payment of an additional premium, resulting in first-dollar coverage under the policy. ...
Deductible amount between a basic health insurance plan and major medical insurance. ...
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