1. What is the Sell Value of a Life Insurance Policy?

The sell value of a life insurance policy represents the amount you would receive if you decide to surrender or sell your policy. It's calculated by subtracting any surrender charges from the policy's cash value.

2. How Does the Calculator Work?

The calculator uses the simple formula:

Where:

• Policy Value — The current cash value of your life insurance policy
• Surrender Charge — Fees imposed by the insurer for early termination of the policy

Explanation: This calculation helps policyholders understand how much they would actually receive if they choose to surrender their policy.

3. Importance of Calculating Sell Value

Details: Knowing your policy's sell value helps in making informed decisions about whether to keep, surrender, or sell your life insurance policy on the secondary market.

4. Using the Calculator

Tips: Enter your policy's current cash value and any applicable surrender charges (found in your policy documents). Both values must be in USD and greater than or equal to zero.

5. Frequently Asked Questions (FAQ)

Q1: What's the difference between policy value and surrender value?
A: Policy value is the total cash accumulation, while surrender value is what you receive after deducting surrender charges.

Q2: Do all policies have surrender charges?
A: Most permanent life insurance policies have surrender charges, especially in early years. Term policies typically don't have cash value or surrender charges.

Q3: How can I find my policy's surrender charges?
A: Check your policy documents or contact your insurance company for specific surrender charge information.

Q4: Are there alternatives to surrendering my policy?
A: Yes, you might consider a policy loan, reduced paid-up insurance, or selling the policy in the life settlement market.

Q5: Do surrender charges decrease over time?
A: Typically yes, most policies have surrender charge schedules that reduce over several years until they disappear.