answersLogoWhite

0


Best Answer

The face value is what your beneficiaries will collect. The cash value is the excess of your premium payments over the cost of the insurance. Click here for more about life insurance cash value.

User Avatar

Wiki User

20y ago
This answer is:
User Avatar

Add your answer:

Earn +20 pts
Q: What is the difference between face amount and cash value?
Write your answer...
Submit
Still have questions?
magnify glass
imp
Continue Learning about Math & Arithmetic

What is the difference between a cash discount and a trade discount?

a cash is an amount deducted from the value of an item at time of purchase, while a trade discount is the deducted from purchase amount for an item of placed value surrendered at time of purchase.


What is a discount?

A blind discount is defined as the difference in cost between the listed cash price for equipment and the reduced financed amount. It can also be the difference between the list price of a ca and a lower interest rate.


Bring out the difference between trade discount and cash dicount?

Cash discount is the discount in amount in accounts payable while trade discount is on sales price discount which is not recorded in business books and transaction is recorded at discount price.


What is the difference between face value and death benefit?

Your death benefit will always be the amount paid to your beneficiaries should you die. Your Face value is almost always the same thing as your death benefit and certainly it is with term insurance. With Cash Value policies however, if you ever make a withdrawl or take a loan on your cash value, this will effect the face value should you die and not pay it back. So suppose you take out a $10K loan on a $100 K policy. Your death benefit is still $100K but your face value should you die is only going to be $90K


What is the difference between discount factor and discount rate?

Discount factor is the factor determining future cash flow, but multiplying the cash flow to obtain present value. Discount rate is used in calculations to equal the cost of capital.

Related questions

What is the difference between a cash discount and a trade discount?

a cash is an amount deducted from the value of an item at time of purchase, while a trade discount is the deducted from purchase amount for an item of placed value surrendered at time of purchase.


What is the difference between the net present value and the discounted cash flow method?

cash method is when you get cash, method is when u give it


What is the difference between face value and cash surrender value of life insurance?

Face value typically refers to the death benefit of the policy (i.e. how much your family would receive if you were to die). Cash surrender value is the amount of money that has accumulated (tax deferred) inside the policy and is the amount of money the owner would receive (before taxes) if s/he were to cancel the policy. Cash surrender value is different from plain old "cash value" or "accumulated value" in that most insurance policies have surrender charges for 10 to 20 years that reduce the total "cash value" or "accumulated value" down to the cash SURRENDER value.


The difference between the amount of cash on the firm's books and the amount credited to it by the bank is?

The amount of cash liquidates possessed by a firm are its assets. The amount of credit lines extended to (and available) by a firm are considered liabilities.


In what states can Walmart gift cards be redeemed for their cash value?

None.Gift cards are for purchases only in some instances cash will be given if there is a difference between the merchandize purchased and the amount left on the card.Read the back of the gift card for specific details.


What is the difference between cash and price?

Price is the amount consumers pay to acquire a good or service whereas cost is the amount used to produce a service or good. Cash is the money in your pocket.


What is the difference between ATM fast cash and withdrawal?

Fast cash is getting money for a specified amount under options 20, 60 , 100, 500, whereas Withdrawal is entering a specified amount for which you receive cash.


Difference between present value and net present value?

Present value is the result of discounting future amounts to the present. For example, a cash amount of $10,000 received at the end of 5 years will have a present value of $6,210 if the future amount is discounted at 10% compounded annually.Net present value is the present value of the cash inflows minus the present value of the cash outflows. For example, let's assume that an investment of $5,000 today will result in one cash receipt of $10,000 at the end of 5 years. If the investor requires a 10% annual return compounded annually, the net present value of the investment is $1,210. This is the result of the present value of the cash inflow $6,210 (from above) minus the present value of the $5,000 cash outflow. (Since the $5,000 cash outflow occurred at the present time, its present value is $5,000.)


What is a differential cash flow?

Differential cash is the difference in cash due between selecting between different alternative options or projects.


If you cash out a permanent life insurance policy what amount do you get net cash value or total coverage amount?

kasafugenkingshun


What is the difference between variable life insurance and universal life?

Nothing is the difference. Universal Life can be fixed or variable. Variable simply means that the cash value is invested in stocks or mutual funds to create a fast (sometimes slower) cash value. With a fixed Universal Life product, the cash value can be linked to an interest rate or an Index.


What is Difference between cash receipts and cash payments?

the second word. here we differ these term by debit and credit when cash receipt then amount field is +ve as on debit and in cash payment it will be -ve as on credit and reverse for opposite .