cash surrender value

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Related to Cash value: cash surrender value, Cash Value Added
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  • noun

Words related to cash surrender value

the amount that the insurance company will pay on a given life insurance policy if the policy is cancelled prior to the death of the insured

References in periodicals archive ?
You may disregard the replacement cost loss settlement provisions and make claim under this policy for loss to buildings on an actual cash value basis.
Purchasing a cash value policy is more expensive in the short run, but the insured will likely have the option to maintain a level premium throughout his lifetime; therefore, it is never too soon to start building a portfolio of permanent cash value life insurance if cash flow allows for that luxury.
Permanent cash value life insurance policies offer tax deferral on the inside cash accumulation, tax-free withdrawals of basis and tax-free loans so long as the policy does not lapse, as well as a death benefit that is income tax-free, pursuant to IRC [sec] 101(a).
Voya Indexed Universal Life--Global Choice NY offers individuals and families the opportunity to protect the financial future of their loved ones while building cash value that can be used to supplement retirement income.
An Allstate claim adjuster calculated the actual cash value of the property as $113,000, including approximately $158,000 to replace the fire-damaged items minus depreciation.
This can be a great way to create an additional tax-free death benefit while guaranteeing cash value growth that often continues to accumulate beyond the total amount of the premium paid into the policy--hence, providing a leveraged death benefit while maintaining access to the cash.
In this case, the insurance company applied these dividends to the cash value of the policy, thus increasing the value of the policy over time.
While similar to the older whole life products in that they allow cash value buildup, variable product cash value is invested in client-directed separate accounts and a separate general investment fund.
Unlike many other products, participating whole life insurance offers three important guarantees: a guaranteed, level premium that will not increase for the life of the contract; guaranteed cash values and nonguaranteed dividends that accumulate on a tax-deferred basis and can be accessed through loans throughout the policyholder's lifetime; and a guaranteed death benefit to beneficiaries, which is usually income tax-free.
Cash value withdrawals usually are tax-free, but only until the client recovers the aggregate premium cost.
Annual cash value increases generally not taxable income to policyholder.
Policyholders can borrow against the cash value for retirement income or to pay college tuition or mortgages, leaving other savings and investments intact.
The common response was, "Actual cash value is the replacement cost minus depreciation.
If it is a policy with cash value, the sale may provide more than the cash value.