Included in whole life insurance quotes are a level premium, a death benefit, and it develops a cash value. Because the policy ages, the quantity of the cash value grows every year. There are several advantages to the cash value. Should you forget a payment after it builds, the insurance provider can borrow from the cash value to meet the premium payment. You additionally have the choice of utilizing that money to purchase a smaller paid up policy, term insurance, or just spend the cash how you want. Some policies are also participating. In other words, the policy-holder participates in the insurance company’s gains and gets dividends. You may determine the cash value of whole life insurance if you’ve all the essential information.
Finding Your Age – Method #1
Find out at what age you took out the whole life plan. If you’re unsure, you can locate it on the deck page, the very first page of the policy form when you open it. It will either provide the date you purchased the coverage or both the date as well as your insurance age. With respect to which company you use, your age may be one year older because it is based on the nearest birthday. Usually, these businesses record the insurance age if they use that method.
Finding Your Age – Method #2
Locate the chart displaying the non-forfeiture values. Usually, you can locate a table of contents on the 2nd or third page of your policy. Locate the page called “non-forfeiture values” and flip to that particular page. You’ll see a chart with different items and various boxes. Locate the box that lists the age you were when you purchased the coverage.
Find the Cash Value Column
Look for the column that says “cash value.” At first you will find three distinct columns. One is “reduced paid up additions”. Another is titled “extended term”. The third and last column is “cash value”.
Calculate Years in Force with Cash Value
Calculate the amount of years you’ve had the whole life policy. To get this done, subtract the year you purchased the policy from the current year. You can also locate the column that states “amount of years in force”. Trace the line for amount of years in force across to the “cash value” column. You’ll discover a number there. Multiply that amount times the amount of thousands of face value you bought.
Add in Dividends and Paid-Up Additions
Now add the cash value of any dividends. Some insurance policies give dividends as well as the cash value. The older the coverage is, the more the dividend grows every year. Occasionally the dividends accumulate as money; other times they purchase tiny plans called “paid-up additions”. These coverage additions also provide cash value and pay dividends. For those who own a policy with returns that purchase paid-up additions, you should include their cash values to the primary policy value. If you need to you can search for your last dividend statement. Usually, it comes in on the policy anniversary. This lets you know how much cash value your paid-up additions have amassed. Simply add this amount to the cash value of your whole life plan.