Amount of money (cash) in a life insurance policy (usually whole life) that is adjusted for factors such as policy loans or late premiums that the policyholder will receive if the policyholder cancels the coverage or surrenders the policy to the insurance company. See cash value. Also called net cash value.
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This is the cash value section of an ordinary life insurance policy. If the insured ceases to pay the premiums, he or she can take the cash value in a lump sum. (See Ordinary Life Insurance).