The net cash value on a life insurance policy is the net cash value you would receive if you surrendered your policy.(Not including tax if applicable)
With whole life policies this is the sum of the guaranteed cash value plus any dividends less any indebtedness.
With Universal life policies, there is often a surrender charge for the first number of years. So the net cash surrender value would be calculated as cash value less loans and surrender charge (if applicable).
If you have further questions, or feel that I could be of assistance, please do not hesitate to contact me.
If you would like to work with a local life insurance broker, you could start with a Google search. For example, if you search for: life insurance broker Halifax or life insurance agent Halifax, my name, along with several others, will come up. You can use the same method to find a life insurance broker in your community.
President, Lane Independent Agency, Southern California
With a permanent policy, you build up equity. After a year or so, you may choose to borrow against the money you are building up. If you take a loan, the remaining equity is the net cash value, the money you be able to get if you closed the policy. If you repay the loan, that net cash value goes up by the amount repaid (give or take interest). You are far better off taking a loan, which you can keep tax free, than cancelling a policy and taking out the cash, upon which you would have to pay tax. Thank you. GARY LANE.
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With whole life policies this is the sum of the guaranteed cash value plus any dividends less any indebtedness.
With Universal life policies, there is often a surrender charge for the first number of years. So the net cash surrender value would be calculated as cash value less loans and surrender charge (if applicable).
If you have further questions, or feel that I could be of assistance, please do not hesitate to contact me.
If you would like to work with a local life insurance broker, you could start with a Google search. For example, if you search for: life insurance broker Halifax or life insurance agent Halifax, my name, along with several others, will come up. You can use the same method to find a life insurance broker in your community.