Cash Value

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250

Term: Cash Value

Definition:In a life insurance policy, this is the amount of money, before adjustments, that are made for factors such as policy loans or late premiums, that the policy owner will receive if the policy owner allows the policy to lapse or cancels it and surrenders the policy to the insurance company. Cash values are a feature of most types of permanent life insurance. Compare to CASH SURRENDER VALUE. Also known as INSIDE BUILD-UP and policy owner's equity.

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CoursePage Number
50 - Employee Life and Disability Insurance 4
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