What does the cash value in the policy mean

Now you can only get 976 yuan for termination.

The amount that should be reimbursed by the life insurance company when the insured requests to terminate or surrender the policy. In long-term life insurance contracts, the insurer is usually required to deposit a certain amount of liability reserve in order to fulfill its contractual obligations.

When the insured requests to terminate or surrender the policy for any reason within the validity period of the insurance, the insurer shall return to the insured the balance of the liability reserve minus the cancellation deduction according to the regulations, and this part of the balance is the termination payment, that is, the cash value of the policy at the time of surrender.

Extended Materials. The cash value is the surrender amount of a life insurance policy. In life insurance with a long insurance period, due to the single premium or balanced net premium system, a certain amount of liability reserve has been accumulated under the policy, and when the insured requests to surrender the policy, the insurer deducts a certain surrender fee from the liability reserve, and the balance is used as the surrender payment.

Also known as "termination payment").

Refund to the insured or policyholder.

The reason why the life insurance company wants to make a termination deduction instead of returning the entire deposit and withdrawal of the liability reserve to the insured is due to the following reasons:

1) Death adverse selection increases. Because the infirm generally do not propose to terminate the contract in the middle of the contract, and after a large number of healthy people terminate the contract, it is bound to increase the average mortality rate of the insured.

2) Affect the use of funds and reduce the company's investment. Due to the termination of the contract, the life insurance company must draw a certain amount of money to pay the terminator in a timely manner, resulting in the loss of part of the investment interest of the company.

3) Additional costs need to be amortized. The excess expenses in the first year of policy issuance are stopped due to the surrender or termination of the policy by the insured, making a part of the additional premium unrecoverable.

4) There is a fee to pay for the cancellation procedure.

Resources. Encyclopedia - Cash Value.

The cash value refers to the amount that is refunded by the insurance company to the policyholder when the policyholder surrenders the policy or the insurance company terminates the insurance contract. Under normal circumstances, the insurance company determines the insurance rate according to the probability of the occurrence of the insured event, and the insurance rate is high if the probability of the accident is high, and vice versa, the insurance rate is low.

The premium paid by the policyholder when he was young and the interest accrued thereof is the cash value of the insurance policy.

The cash value is the surrender amount of a life insurance policy. In life insurance with a long insurance period, due to the adoption of a single premium or balanced pure premium system, a certain amount of liability reserve has accumulated under the policy, and when the insured requests to surrender the policy, the insurer deducts a certain surrender fee from the liability reserve, and the balance is returned to the insured or the policyholder as a surrender fee (also known as "termination payment").

A single premium life insurance policy can be surrendered at any time to receive the surrender benefit; A life insurance policy that pays premiums in installments can surrender the insurance policy at any time after one or two years of payment, and the amount of surrender money that can be received at the time of surrender of such insurance policy is the cash value of the insurance policy.

An insurance policy with a cash value is transferable upon endorsement (sometimes with the consent of the beneficiary, as provided for in the contract), and the cash value of such transfer insurance policy is returned to the shipping value, not a replacement of the insured.

When the insured is young, the probability of death is low, and the policyholder pays more premiums than they actually need, and the overpaid premiums will be accumulated by the insurance company year by year. When the insured is old, the probability of death is high, and the premium paid by the policyholder in the current period is not enough to pay the current claim, and the shortfall will be made up by the overpaid premium paid by the insured when he was young.

This part of the overpaid premium, together with the interest generated by the royal family, is accumulated every year, which is the cash value of the policy, which is equivalent to a kind of savings of the policyholder in the insurance company.

The cash value of an insurance policy refers to the amount of money that can be refunded when the policy is surrendered.

If the surrender is equivalent to a breach of contract, it is not possible for the insurance company to refund the full amount of the premium collected. Any policy has an "initial cost", that is, the operating costs of the insurance company (such as salesman salary, salary of leaders at all levels, production costs, rent costs, etc.), which will be charged as long as the policy passes the cooling-off period, and this part of the money is of course impossible to refund when the policy is surrendered!

The cash value can also be used as a basis for applying for a policy loan. Generally, insurance companies stipulate that you can apply for an 80% cash value loan for your policy.

The cash value can also be used to self-advance, that is, when the premium is due, if it cannot be paid for a while, and the cash value of the policy is greater than the premium payable, you can apply to use the cash value to advance, but you need to pay interest, similar to a policy loan, but the money is paid directly to the premium.

In the case of participating insurance, the cash value is also the basis for dividends.

When buying insurance, most salesmen do not explain the meaning of cash value, so many people will feel deceived when they surrender the policy. Unlike universal insurance, insurance companies do not require business personnel to explain to customers what the cash value means.

Hope the above explanation is helpful to you. Wishing you peace and health!!

Extended reading: [Insurance] How to buy, which one is better, teach you to avoid these insurance"pits"

Summary. For example, this person must eat one apple a day, but the apples are on the market, and he is afraid that he will not be able to afford them in the future. I bought the apples I wanted to eat in my life in advance.

For example, in the state of the tribe, this person must eat an apple holding ear fruit every day, but the apple ** is on the market, and he is afraid that he will not be able to afford it in the future. I bought the apples that I wanted to eat in my life in advance, and paid for them.

The money he spent is an average of **, of course, the filial piety money he spent at the beginning is lower than the market price, and with the price of the price, the money spent in the future may be far below the market price.

What is the unit of cash value.

The difference between the money he spends and the market price is the cash value of the policy, in fact, the cash value is accumulated in the policy. The cash value is in dollars.

The cash value table given by the insurance policy is not in units of $1,000.

This does not necessarily, it depends on the specific cash value table, which is generally in yuan.

Look at this table, I pay 60,000 yuan a year, a total of six years, how much should I be refunded if I surrender the policy in the tenth year.

Hold on. 2777 yuan, looking at the cash value of the last line, is the surrender money.

No, it's 2700

The premium of 1,000 yuan is 2,700 yuan, and you have invested 60,000 premiums, then it is gone, and the cash value of the banquet in the 10th year is, 6 times it, which is equal to 10,000 yuan of slippery potatoes.

The cash value of the policy refers to the value of life insurance with savings, usually the policyholder surrenders the policy after the hesitation period is to refund the fee according to the cash value of the current policy, in addition, with the cash value, you can also apply for a policy loan, the amount is up to 80% of the cash value, and the loan term is half a year.

In addition, short-term insurance products have no cash value, and the policyholder applies for surrender after the hesitation period, and the insurance company will refund the unexpired net premium.

The cash value of the policy refers to the value of the life insurance with savings, usually the policyholder surrenders the policy after the hesitation period is to refund the fee according to the cash value of the current policy, in addition, with the cash value can also apply for a policy loan, the amount is the most shouting 80% of the cash value, and the loan term is half a year.

In addition, short-term insurance products have no cash value, and the policyholder applies for surrender after the hesitation period, and the insurance company will refund the unexpired net premium.

The cash value of the policy refers to the value of life insurance with savings, usually the policyholder surrenders the policy after the hesitation period according to the cash value of the current policy, in addition, with the cash value of Zheng can also apply for a policy loan, the amount is up to 80% of the cash value, and the loan term is half a year.

In addition, short-term insurance products have no cash value, and the policyholder applies for surrender after the hesitation period, and the insurance company will refund the unexpired net premium.