What Is Embedded Value In Life Insurance?

  1. 4330 POINTS
    Jerry Vanderzanden, CLU, ChFC
    Co-Founder, Coastal Financial Partners Group, California
    Not sure what you mean by "embedded value" in life insurance. Life insurance pays a death benefit that is normally income tax free to the beneficiary. In addition, for permanent policies, after the first few years, there may be cash surrender value available in the event the policy is "cashed in" and coverage canceled by the policy owner. Or, a portion of the cash value can be borrowed from the policy and coverage maintained.
    Answered on May 20, 2013
    flag this answer
  2. 0 POINTS
    Contact Me
    David RacichPRO
    Fountain Hills, Arizona
    Embedded value in a conservative life insurance accounting term the measures the “present value” of future profits (PVFP) and adjusted net asset (ANAV) value, i.e. ANAV + PVFP = EV. It is used in stock life insurance companies in an attempt to assess a company’s worth to predict shareholder value.
     
    Answered on May 20, 2013
    +0
    1 Thumb up 0
    +1 this answer
    flag this answer
    3. Did you find these answers helpful?
    Yes
    No
    Go!

Add Your Answer To This Question

You must be logged in to add your answer.


<< Previous Question
Questions Home
Next Question >>