What is life insurance policy value

The face value of a life insurance policy is the initial death benefit it will pay out if the insured passes away. For a term policy, this will remain the same over its life. For a permanent policy, the actual death benefit may grow or decrease as the cash value portion of the policy changes.

Is policy value the same as cash value?

The cash value and surrender value are not the same as the policy's face value, which is the death benefit. However, outstanding loans against the policy's cash value can reduce the total death benefit.

What does value of life insurance mean?

The face value of life insurance is the dollar amount equated to the worth of your policy. It can also be referred to as the death benefit or the face amount of life insurance. In all cases, life insurance face value is the amount of money given to the beneficiary when the policy expires.

What is the cash value of a $10000 life insurance policy?

So, the face value of a $10,000 policy is $10,000. This is usually the same amount as the death benefit. Cash Value: For most whole life insurance policies, when you pay your premiums some of that money goes into an investment account. The money in this account is the cash value of that life insurance policy.