Values

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.

BREAKING DOWN '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. Nonforfeiture Clause

    A clause in an insurance policy that allows for the insured to ...
  2. Cancellation Provision Clause

    It is a provision in an insurance policy that permits an insurer ...
  3. Participating Policy

    An insurance contract that pays dividends to the policy holder. ...
  4. Adjustable Life Insurance

    A type of life insurance that combines features of term and whole ...
  5. Term Life Insurance

    A policy with a set duration limit on the coverage period. Once ...
  6. Valuation Clause

    A provision in certain insurance policies that specifies the ...
Related Articles
  1. Retirement

    Life Insurance: How To Get the Most Out Of Your Policy

    There are many benefits to owning a life insurance policy - if you get the right one for you.
  2. Personal Finance

    Intro To Insurance: Types Of Life Insurance

    By Cathy ParetoLife insurance protection comes in many forms, and not all policies are created equal, as you will soon discover. While the death benefit amounts may be the same, the costs, structure, ...
  3. Retirement

    5 Mistakes That Can Ruin Your Life (Insurance)

    Don't let these simple errors leave you unprotected. Read on to learn more.
  4. Personal Finance

    Cashing in Your Life Insurance Policy

    Tough times call for desperate measures, but is raiding your life insurance policy even worth considering?
  5. Financial Advisor

    Pros and Cons of Indexed Universal Life Insurance

    Indexed universal life insurance has its pros and cons. Here's what you need to consider before purchasing a policy.
  6. Trading

    Profit From Unwanted Life Policies With Life Settlement

    With a life settlement you could cash in on your policy money now.
  7. Personal Finance

    How Linked Benefit Insurance Policies Work

    Linked benefit policies can be a viable alternative to traditional long-term care insurance. Here's how they work.
  8. Personal Finance

    Universal Life Insurance: Dangers for Retirees

    This type of permanent life insurance is often touted as a source of income, but using it that way is full of traps. So, think before you buy.
  9. Personal Finance

    Getting Your (Insurance) House in Order

    From starting a family to retirement, insurance can play a role in taking care of financial needs. This piece looks at some of the choices you can make.
  10. Managing Wealth

    Life Insurance With an Increasing Death Benefit

    Why buy a life insurance policy with an increasing rather than level death benefit
RELATED FAQS
  1. How do I borrow money from my life insurance?

    Hello, I would like to find out the steps I need to take towards borrowing money off my life insurance. ... Read Answer >>
  2. If I surrender this life insurance policy and take the $40,000, are there any tax ...

    I have a flex life policy for $100,000 that has a cash value or surrender value of $40,000. ... Read Answer >>
  3. Would I owe taxes on a 1035 exchange?

    I have an old paid-up life policy with a substantial outstanding loan. If I surrender the policy, the ... Read Answer >>
  4. What is the best method to cash in my life insurance?

    I am 70 and I’m collecting $1,500 a month from Social Security. I have a 75K paid up life insurance and would like ... Read Answer >>
  5. What is the difference between the death benefit and cash value of an insurance policy?

    Understand the difference between the various components of a life insurance policy including the death benefit and a policy's ... Read Answer >>
  6. What is the difference between term and universal life insurance?

    Term life insurance is the most basic of insurance policies. It is nothing more than an insurance policy that provides protection ... Read Answer >>
Trading Center