Life insurance net cash value is the amount of cash value less the amount of any loans that the insured has taken against the cash accumulation in the policy. Since this event is not taxable, many owners of whole life insurance borrow the values from the policy versus getting a commercial loan.
The net cash value of a life insurance policy is the amount of cash that you would receive if you were to surrender the policy. It is the current cash value accumulation, minus any fees or surrender charges. The net cash value will also subtract from the cash value, any loans you had taken out against your policy.
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Keith Prim
Dallas, TX
214-435-0791