What does face amount mean cash surrender mean in a life insurance policy?
Face amount if the death benefit Cash surrender is the amount you will get if you cancel the policy. This is less than the cash value until the policy is about 7-9 years old. Cash value is the value of the cash as long as the policy is in force. If someone is trying to sell you a cash value policy don’t let them “sell” you on the cash value benefits. You should buy this for the insurance benefit. The cash value is not an investment. If you compare life insurance to an investment the investment will win. Most people could use a mix of term and cash value life insurance.
