Is cash value the same as Face value on life insurance?

Answer 1

NO. Face value is what gets paid out if you die - regardless of how long into the policy you are. It never changes.

Cash value, is kind of like your "cash back" rewards on your visa card - the longer you pay for the policy, the more it grows (a paltry amount, usually 5% of what you pay in). But if you die and collect the face value, then the cash value goes to the insurance company. If you cancel the policy, the cash value goes back to you. It's a sales tool, for selling policies to people who aren't good at math.

Answer 2

Since there is no cash value in Term Policies; (Unless it is a Return-of-Premium Term policy), we will address Universal, whole, and variable life policies.

The Cash (Surrender) Value is the value that would be paid to you if the policy were surrendered. The Cash Surrender value is the Accumulation Value less surrender charges less indebtedness (policy loans). If the Cash Surrender Value is not sufficient to pay the Monthly Deductions, the policy will lapse unless it is eligible to be continued under the Monthly Guarantee Premium Provision. An illustration will show you the Cash Surrender Value at the end of each illustrated policy year.

Face Amount; (that you refer to as "Face Value") is the total life insurance amount applied for.

The classification rating, (Standard, preferred, etc.), gender, and age is what determines the premium.

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Answer 3

No. Cash value refers to the value within a whole life (permanent) insurance policy. As you pay premiums over the years, the cash value within the policy builds, and you may be able to take a loan out on that money.

The cash value is paid to your beneficiary, in the event of your death, in addition to the death benefit.

The face amount is the death benefit or amount of life insurance coverage provided by your life insurance policy. For example, if you have a $100,000 term life insurance policy - you have a $100,000 face amount of life insurance protection.

I hope that helps.

Answer 4

No. Cash value is what the insurer will pay you, if you surrender your policy before its term is finished. That is a portion of the amount that you have already paid to the insurer. Many of the Insurers will fix a minimum no. of years before cash value is paid.

Answer 5

No. they are two different meaning & term in insurance. I suggested that you may call your local agent to ask your questions regarding all kinds of life insurance terms. Or, you may check the following;

http://www.insureme.com/landing.aspx?Refby=614137&Type=life

Once you enter your basic info, then later 3-5 agents will call your with the several quotes. They will fight for your attention. You can get a free quote & a lot of information about the life.

I used this method to find a best answer for my questions...