Insurance Glossary

Cash Value

Life

Definition

The savings component of a permanent life insurance policy that accumulates over time and can be borrowed against or withdrawn.

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Related Terms

Whole Life Insurance

Permanent life insurance that provides coverage for the insured's entire lifetime and includes a cash value component.

Universal Life Insurance

A type of permanent life insurance with flexible premiums and death benefits, along with a cash value component.

The amount paid by the policyholder to the insurance company for coverage, typically on a monthly, quarterly, or annual basis.

Actual Cash Value

The repayment value for indemnification due to loss or damage of property; in most cases it is replacement cost minus depreciation.

The person or entity designated to receive the benefits or proceeds from an insurance policy.

Term Life Insurance

Life insurance coverage for a specified period of time, providing a death benefit if the insured dies during the term.

A financial product that provides regular payments to an individual, typically used for retirement income.

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