0
You can't tell from Face amount. Check the policy for the cash value schedule. The Insurance Company should send you an annual statement. Call the company.
Wiki User
∙ 16y ago
Add your answer:
Earn +20 pts
What are the basic components of bonds?
Coupon - periodical cash payment Corpus or Face Value - amount paid at maturity
When a life insurance policy is cancelled and the insured selects term nonforfeiture the cash value of the policy will be used to purchase term insurance what happens to the face amount?
face amount reduces and the policy is made for paid-up value
When a reduced-paid up nonforfeiture option is chosen what happens to the face amount of the policy?
IT IS REDUCED TO THE AMOUNT OF WHAT THE CASH VALUE WOULD BUY AS A SINGLE PREMIUM
Benefit of choosing Extended Term Insurance as a nonforfeiture option?
It has the highest amount of Insurance Protection; Under this option the insurer uses the policy cash value to convert to term insurance for the same face amount as the former permanent policy. The duration of the new term coverage lasts for as long a period as the amount of cash value will purchase.
Does the life insurance beneficiary get both the cash value and the face amount?
Not usually, though I can't say that it is impossible. Life insurance is not regulated like car and home so one particular company could promise you that. Generally the cash value is if the insured cashes in the policy and the face amount is paid to the beneficiary when the insured dies. I was a life insurance agent for 15 years.
What is the difference between face amount and cash value?
The face value is what your beneficiaries will collect. The cash value is the excess of your premium payments over the cost of the insurance. Click here for more about life insurance cash value.
Does the face amount of endowment insurance double if you are alive at the end of the period?
No. At the end of an endowment policy, the cash value equals the face amount.
What is the difference between face value and cash surrender value of life insurance?
Face value typically refers to the death benefit of the policy (i.e. how much your family would receive if you were to die). Cash surrender value is the amount of money that has accumulated (tax deferred) inside the policy and is the amount of money the owner would receive (before taxes) if s/he were to cancel the policy. Cash surrender value is different from plain old "cash value" or "accumulated value" in that most insurance policies have surrender charges for 10 to 20 years that reduce the total "cash value" or "accumulated value" down to the cash SURRENDER value.
What are the basic components of bonds?
Coupon - periodical cash payment Corpus or Face Value - amount paid at maturity
When a life insurance policy is cancelled and the insured selects term nonforfeiture the cash value of the policy will be used to purchase term insurance what happens to the face amount?
face amount reduces and the policy is made for paid-up value
When a reduced-paid up nonforfeiture option is chosen what happens to the face amount of the policy?
IT IS REDUCED TO THE AMOUNT OF WHAT THE CASH VALUE WOULD BUY AS A SINGLE PREMIUM
Whole life insurance what happens to the cash value when you die?
Depends on how it is set up. My policy has a death benefit that actually increases by more than my cash value over the years so if i die my beneficiaries get the original face amount PLUS the cash value and then some!
What is the cash value of life insurance?
They are not all the same, will depend on the face amount contact the issueing company or read the policy for this information.
How much of the face value will you receive if you surrender policy?
You will receive the cash value minus the surrender charges, not the face value of the policy.
Can the cash value ever be more then the face value?
No that I have seen or read anywhere but the bigger the cash value the bigger the debt benefit proportionally.
Benefit of choosing Extended Term Insurance as a nonforfeiture option?
It has the highest amount of Insurance Protection; Under this option the insurer uses the policy cash value to convert to term insurance for the same face amount as the former permanent policy. The duration of the new term coverage lasts for as long a period as the amount of cash value will purchase.
Does the life insurance beneficiary get both the cash value and the face amount?
Not usually, though I can't say that it is impossible. Life insurance is not regulated like car and home so one particular company could promise you that. Generally the cash value is if the insured cashes in the policy and the face amount is paid to the beneficiary when the insured dies. I was a life insurance agent for 15 years.
