Values

AAA

DEFINITION of 'Values'

The worth of a nonforfeiture clause that specifies that an insured party would receive the equity from a life insurance policy, in the event that the policy were canceled because the premium payments were not made. The policy's value would be returned to the policy holder in some manner, either through a partial refund of the premiums that had been paid to date, or through the payment of a portion of the benefits.

INVESTOPEDIA EXPLAINS 'Values'

Life insurance policy holders can select one of four nonforfeiture benefit options: the cash surrender value, extended term insurance, loan value and paid-up insurance. If the policy holder does not make a selection, the terms of the policy will generally stipulate which option would go into effect, in the event that the policy lapses or is surrendered.

RELATED TERMS
  1. Surrender Period

    The amount of time an investor must wait until he or she can ...
  2. Surrender Rights

    A right to cancel an annuity or life insurance contract in exchange ...
  3. Cash Surrender Value

    The sum of money an insurance company will pay to the policyholder ...
  4. Life Insurance

    A protection against the loss of income that would result if ...
  5. Nonforfeiture Clause

    A clause in an insurance policy that allows for the insured to ...
  6. Elder Law

    Elder law is a legal specialty focusing on the rights and needs ...
Related Articles
  1. A Look At Single-Premium Life Insurance
    Home & Auto

    A Look At Single-Premium Life Insurance

  2. Permanent Life Policies: Whole Vs. Universal
    Options & Futures

    Permanent Life Policies: Whole Vs. Universal

  3. Variable Vs. Variable Universal Life ...
    Retirement

    Variable Vs. Variable Universal Life ...

  4. Life Insurance: Putting A Price On Peace ...
    Insurance

    Life Insurance: Putting A Price On Peace ...

comments powered by Disqus
Hot Definitions
  1. Correlation

    In the world of finance, a statistical measure of how two securities move in relation to each other. Correlations are used ...
  2. Letter Of Credit

    A letter from a bank guaranteeing that a buyer's payment to a seller will be received on time and for the correct amount. ...
  3. Due Diligence - DD

    1. An investigation or audit of a potential investment. Due diligence serves to confirm all material facts in regards to ...
  4. Certificate Of Deposit - CD

    A savings certificate entitling the bearer to receive interest. A CD bears a maturity date, a specified fixed interest rate ...
  5. Days Sales Of Inventory - DSI

    A financial measure of a company's performance that gives investors an idea of how long it takes a company to turn its inventory ...
  6. Accounts Payable - AP

    An accounting entry that represents an entity's obligation to pay off a short-term debt to its creditors. The accounts payable ...
Trading Center