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The savings component of a permanent life insurance policy that accumulates over time and can be borrowed against or withdrawn.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.
Premium
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.
Beneficiary
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.
Annuity
A financial product that provides regular payments to an individual, typically used for retirement income.
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