Term Life Insurance-term Life Policy?
Posted September 15, 2009 – 4:39 am in: term life insurancei am wanting to cash in a 14year life insurance policy. the amount is $50,000. what is the formula for a cash out, in other words how much will i receive?
Tags: Insuranceterm, Life, Policy, Term
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IF there is cash value in your TERM policy, you will find a non-forfeiture values page in the policy.
TERM life insurance has no cash value, so you won’t find the above mentioned non-forfeiture values page.
The word non-forfeiture means that there are values in a PERMANENT WHOLE LIFE policy which can be accessed, and to keep one from losing the insurance should an emergency arise and couldn’t pay the premiums when due.
TERM is TEMPORARY for a specified period of time.
WHOLE LIFE is PERMANENT up to age 100. At age 100, the face amount of the policy is paid to the insured.
There is no hard and fast formula.
It’s roughly 10% of what you’ve paid in, in premiums, minus any loans you’ve taken out, minus surrender fees.
You’ll have to call them to be sure.
**oops. I missed that it’s a TERM policy. The other guys are right – no cash value on term policies – nothing to cash in.**
Term policies have no cash value.