When a life insurance policy with a cash value component is fully cleared or surrendered, what will happen to theย policyholder who typically receives the cash value that has accumulated within the policy.
When a life insurance policy with a cash value component is fully cleared or surrendered, what will happen to theย policyholder who typically receives the cash value that has accumulated within the policy.
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After a life insurance policy is fully cleared, the cash value that has accumulated in the policy remains with the policyholder. The policyholder has the option to withdraw the cash value, subject to any surrender charges or taxation. Alternatively, they can also choose to leave the cash value in thRead more
After a life insurance policy is fully cleared, the cash value that has accumulated in the policy remains with the policyholder. The policyholder has the option to withdraw the cash value, subject to any surrender charges or taxation. Alternatively, they can also choose to leave the cash value in the policy and use it as collateral for a loan or to cover future premiums. If the policyholder passes away, the cash value is typically paid out to the beneficiaries in addition to the death benefit.
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