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Whats the difference between the face amount and the cash value?

April 26, 2017cash difference Face value

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Whats the difference between the face amount and the cash value?

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The face value is the amount that is paid to the policyholder’s beneficiaries when he or she dies. The cash value is the cash accumulation in the policy. The policy’s cash value can be used for many things, such as financing a college education, or supplementing retirement savings.