accumulation fund vs cash surrender value vs shuttle fund

by Guest » Wed Oct 22, 2014 05:07 pm
Guest

Hi I want to know

Is the accumulation fund the same as the csv ?

and what is the concept behind the shuttle fund?

Thx

Total Comments: 1

Posted: Tue Oct 28, 2014 12:56 am Post Subject:

I have no idea what you mean by "shuttle fund". Perhaps if I saw a copy of the contract that uses this term I could give you an answer.

As for the accumulation account and the cash surrender value, these two amounts are only the same if there is no surrender charge, and if there is no surrender charge, there must also be no loans or other encumbrances against the policy, such as unpaid premiums.

Another way to say this is: The Cash Surrender Value is equal to the Accumulation Fund Value minus any amounts owed to the insurance company, including surrender charges (sometimes referred to by agents as "penalties"), loan principal, loan interest, unpaid premiums, and any other charges against the Accumulation Fund (such as terminal illness benefits paid). You should finds words to this effect in the contract.

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