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However, most people receive around 20% of the face value on average, ing to LISA. So, if we're using that 20% average to calculate the cash value of a $100,000 life insurance policy, the cash value of the policy would be $20,000.
Cash value is the portion of your policy that accumulates1 over time and may be available for you to withdraw or borrow against for long-term savings needs such as retirement, paying down a mortgage, covering an unforeseen emergency, or a significant expense, like sending your child to college.
Cash value in a permanent life insurance policy accumulates over time and can be accessed while you're still alive. You can use this money to fund retirement, cover your life insurance premiums, or increase your policy's death benefit to pass on more money to children, for example.
The value of your life insurance refers to the death benefit paid to beneficiaries. To find the cash value of your life insurance, calculate your total payments and subtract surrender fees. Remember, the value for a sale will be lower than the death benefit to allow the buyer to profit.
The cash value of your settlement will depend on all the other factors mentioned above. A typical life settlement is worth around 20% of your policy value, but can range from 10-25%. So for a 100,000 dollar policy, you would be looking at anywhere from 10,000 to 25,000 dollars.