The cash surrender value of a life insurance policy can decrease if the cash value is being used to pay your policy premiums. When you purchased your policy, you may have elected to have the cash value supplement your premium if the premium was not sufficient to keep the policy in force.
Anther way the cash surrender value can decrease is if the premium is not keeping up with the cost of insurance. The cost of insurance (COI) is partly based on age, and if your premium is not sufficient to satisfy the COI and build up more cash value, it will be the cash value that suffers. With indexed universal life, the cash surrender value can go down per the performance of the funds selected for your policy.
.JPG){kind=avatar}
Anther way the cash surrender value can decrease is if the premium is not keeping up with the cost of insurance. The cost of insurance (COI) is partly based on age, and if your premium is not sufficient to satisfy the COI and build up more cash value, it will be the cash value that suffers. With indexed universal life, the cash surrender value can go down per the performance of the funds selected for your policy.
Finally, universal life polices