RB asked in Business & FinanceInsurance · 2 months ago

my whole life policy shows a "cash value" and a "cash surrender value". What is the difference?

6 Answers

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  • 2 months ago

    FACE value is what it is worth if you die.   $1,000,000 policy would pay out that much money.  CASH value is how much in the account you have saved up.  It comes from a proportion of your payments. .   Cash surrender value is the same as the CASH value and is paid to you when you surrender the policy and get your savings back.  

  • 2 months ago

    Cash surrender value is the amount of payout you will receive when you surrender the policy, and it includes amounts deducted for any outstanding loans and any early termination surrender fees.

    Once the required time period you must maintain the policy in good standing (by paying premiums) that is stated in the policy has passed, the early termination fees go away, and the cash value and cash surrender value should be the same on a policy where there are no loans.

  • car253
    Lv 7
    2 months ago

    Whole life has a cash value.    Cash surrender value is the cash value minus any loans you took out plus the dividends if any.     Cash surrender value is the amount of money you get if you cancel the policy.

  • 2 months ago

    A whole life policy would not show that at all, so you don't have a universal life policy.  A universal life policy would, though.  The cash value is the amount in the policy, but the surrender value is after the surrender charges are removed from the cash value.  But, again, a whole life policy doesn't have those.  Those just have a cash value.

    Ignore the thumbs down as that person clearly doesn't understand how a whole life policy works.  The surrender fees of a whole life policy are built into the policy, so you would never see a fee.  If you DO, then it's not a whole life policy.  They simply just don't have cash value for a few years.

    Rick B...I bet my cash value policy has outperformed your investments this year.

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  • Anonymous
    2 months ago

    I have one too. My parents bought it when I was a kid. Cash value is what you can cash it out for. I don't think mine has cash surrender value only death benefit?

    $6117.67 cash value+5.16% for year. Death benefit $9272.08 +3.42% ,got 1/6, figures as of 1/24/20. 

  • Rick B
    Lv 7
    2 months ago

    Whole life is a rip off.  Buy level term and invest the difference in an actual investment, not a life insurance.

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