if my policy is for 20,000 and my cash value is 9000.00 does that mean i have 29,000 paid out at time of death

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Asked July 3, 2015

1 Answer


If you have a whole life insurance policy, the premiums you pay build a cash value that you can borrow against or take as a lump sum payment. But the cash value is different than the value of the life insurance.

Say you have a life insurance policy that is worth $20,000. That $20,000 is your death benefit. If you die while the policy is in force, it will pay out $20,000 to your beneficiary. If the policy has a $9,000 cash value, it means you would get $9,000 if you canceled the policy. Cash value is also called cash surrender value, because you get the money if you surrender the policy.

Cash value and the death benefit are separate pool of money, and you aren't entitled to both, so you would only get the $20,000 death benefit if you die or the $9,000 cash value if you cancel the policy.

Answered July 9, 2015 by Anonymous

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