Accumulated value pertains to whole life or cash-value life insurance. It includes the accumulated amount of the policy’s cash value—capital investment plus earned interest or appreciation in value based on whatever stocks and bonds and others that the insurance company has invested in. When policy subscribers pay the premium on a cash-value life insurance policy, part of their hard-earned money pays for the life insurance portion—the part of the policy you don’t want to use. At least not for a while.
The other part of your hard-earned money goes to the cash-value portion of the policy—what you get when you decide not to die. If you cash in the policy early, the amount of cash you get will be less than the accumulated value, if there is an early cash-out penalty. And chances are...there’s an early cash-out penalty.
Related or Semi-related Video
Finance: What is Fair Market Value?3 Views
Finance a la shmoop what is fair market value? double bubble toil and trouble [Man casting a curse]
what is the fair price of this pile of rubble so this term revolves around the
notion of fair like what is fair and by the way who told you the world was fair
anyway all right but financially fair or at least fair market means what the
market will fairly and legally pay for an asset that's fair and so that means [Man discussing financial fair]
fair as in not cash from a Somalian warlords leather briefcase but rather
fair as in the legitimate selling price of this excellent two-bedroom three-bath
shoebox in Palo Alto selling for 3 million dollars today for something to
be "of fair market" the buyer has to be knowledgeable and
unpressured i.e the somalian warlord does not in fact have a gun aimed
at the buyers head or any other body part and generally speaking [Gun aims at buyers body parts]
the market itself has to be a legitimate market like real estate or jewelry or
stocks or bonds or whatever if it's an illegitimate market well it's a probably
wondering why it was born out of wedlock so you can't do that
when you assess fair market value things have to be legal and liquid and well
fair whatever the market will pay for it that's the fair value [Hand dealing out cash]
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