Examples of How one can Calculate Money Give up Worth of Life Insurance coverage
Let’s put some numbers in right here to assist this make sense.
Instance #1
Say you’ve had your coverage for 10 years with an collected money worth of $5,000. In case your insurer fees a price of 15%, right here’s how the calculation works out:
$5,000 x 15% = $750 give up price
$5,000 – $750 = $4,250 give up worth for you
Instance #2
Now, let’s take a look at a distinct instance the place more money worth has accrued. On this instance, let’s say you’ve had the coverage for 20 years, paying $250 monthly, with an collected money worth of $20,000. In case your insurer fees a price of 15%, right here’s how the calculation works out:
