Business, Legal & Accounting Glossary
The difference between the value of a permanent life insurance policy and the policy’s cash value to date. For example, if a life insurance policy is worth $250,000 at face value, and the cash value is $50,000, the amount as risk is $200,000. The $200,000 represents the amount that the insurer would have to pay to the policy holder if the insured party dies.
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This glossary post was last updated: 20th November, 2021 | 0 Views.