If you have Term Life Insurance, your policy is worth the face amount of the policy. However, it is only worth that if you die before the policy lapses (at the end of the term, or when you quit paying premiums).
If you have permanent insurance, your policy has three possible values:
1) The face amount, which is what your beneficiary would be paid if you died.
2) The cash value (f there is any), which is what you could borrow from, or get in cash if you surrendered the policy.
3) Sometimes a permanent policy can be sold as a life settlement. The insured person must have significant health problems and the policy must have certain criteria to be considered by investors for purchase.
In #2 and 3#, the policy will no longer pay your beneficiary any death benefit if you die. So the highest worth for your Term or Permanent policy is to keep it until death occurs.
President, The Firm of Steven H. Kobrin, LUTCF, 6-05 Saddle River Rd #103, Fair Lawn, NJ 07410
To your spouse, it is worth a whole lot. Where else could he or she get that much money within five days of your death!?
To you, it could be worth a lot of cash. Some people use permanent insurance to accumulate wealth. Given the proper product, the proper management, and sufficient time, that cash growth can be significant.
In a way, however, life insurance is priceless. You are paying for peace of mind. No need to worry about the finances of your heirs. If you have planned properly, they will not only be okay, but well-off.
.JPG){kind=avatar}
If you have permanent insurance, your policy has three possible values:
1) The face amount, which is what your beneficiary would be paid if you died.
2) The cash value (f there is any), which is what you could borrow from, or get in cash if you surrendered the policy.
3) Sometimes a permanent policy can be sold as a life settlement. The insured person must have significant health problems and the policy must have certain criteria to be considered by investors for purchase.
In #2 and 3#, the policy will no longer pay your beneficiary any death benefit if you die. So the highest worth for your Term or Permanent policy is to keep it until death occurs.
To you, it could be worth a lot of cash. Some people use permanent insurance to accumulate wealth. Given the proper product, the proper management, and sufficient time, that cash growth can be significant.
In a way, however, life insurance is priceless. You are paying for peace of mind. No need to worry about the finances of your heirs. If you have planned properly, they will not only be okay, but well-off.
How much is that worth to you?