How do I calculate the cash value?

[piemaker]

What is the name of your state? Hawaii

I will have a fully paid up 1 million whole life policy when I reach 45 y.o. soon. Without contacting the ins. co. how might I figure a rough estimate on the cash value?
Thank you

 

[Grant-RTG]

That is a little hard to say, it all depends on the specific policy and the insurance provider.

I have seen the surrender value as high as 15% and as low as .2%. Average is probably around 3-5%.

It won't hurt to contact them and ask.

 

[FirstChance]

the only way

To detirmine the cash value with any degree of accuaracy is to contact your insurance company and ask them for an inforce illistration. this is a history of what your policy has done and where it is at.

The reason this is the only way is becuase a whole life policy grows in two ways, a guaranteed growth rate and with dividends. The guaranteed rates will be listed in your original policy under the guaranteed amounts on the illistration. If you find your original policy you should find a table that lists dollar amounts next to age levels.

As for the dividends there is no way to predict what they were or even if you company paid them.

one other factor that can affect your cash value is the dividend option you chose at the time of purchase.

Your policy summary, which you should get at least once a year, will list your dividend option as well as current cash value.

be careful how you use and understand the term "paid up." it is actually very rare for a policy to reach a paid up standing.