Policy Cash Value Summary
The results below use a simplified estimating model. Actual insurer illustrations can differ by policy design, charges, dividends, riders, and loan terms.
Projection Graph
Export Options
Download the current projection table for reports, reviews, or client discussions.
Total Dividends Credited
$0.00
Cash Value As % Of Death Benefit
0.00%
Yearly Projection Table
| Policy Year | Age | Premium Paid | Net Premium | Guaranteed Growth | Dividend | Gross Cash Value | Loan Taken | Loan Balance | Surrender Charge | Net Surrender Value |
|---|
Calculator Inputs
Example Data Table
Use this sample dataset to understand how each field drives the projection.
| Input | Example Value | Reason |
|---|---|---|
| Issue Age | 35 | Policy begins in mid career. |
| Current Age | 45 | Shows current policy position. |
| Target Age | 65 | Measures long term cash growth. |
| Death Benefit | $250,000 | Useful for ratio analysis. |
| Annual Premium | $4,200 | Steady yearly funding amount. |
| Premium Payment Years | 25 | Premiums stop after age 60. |
| Guaranteed Growth Rate | 3.20% | Conservative baseline estimate. |
| Dividend Rate | 1.80% | Illustrative non guaranteed addition. |
| Annual Policy Fee | $120 | Reduces net premium invested. |
| Surrender Charge | 4% for 10 years | Reflects early policy liquidity limits. |
Formula Used
This calculator uses a simplified yearly projection model. It estimates policy cash growth, dividend additions, policy fees, loan effects, and surrender reductions.
1) Net Premium
Net Premium = Max(Annual Premium - Annual Policy Fee, 0)
2) Guaranteed Growth
Guaranteed Growth = Opening Cash Value × Guaranteed Growth Rate
3) Dividend Addition
Dividend = Opening Cash Value × Dividend Rate
4) Gross Cash Value
Gross Cash Value = Opening Cash Value + Net Premium + Guaranteed Growth + Dividend
5) Loan Balance
Loan Balance = Prior Loan Balance × (1 + Loan Interest Rate) + Annual Loan
6) Surrender Charge
Surrender Charge = Gross Cash Value × Surrender Charge Rate
This applies only during the selected surrender charge years.
7) Net Surrender Value
Net Surrender Value = Gross Cash Value - Loan Balance - Surrender Charge
How to Use This Calculator
- Enter the issue age, current age, and target age.
- Input the death benefit and annual premium.
- Set how many years premiums will be paid.
- Enter the starting cash value, if any.
- Add guaranteed and dividend rates for growth estimates.
- Include annual policy fees for a more realistic projection.
- Add loan values if policy borrowing is expected.
- Set surrender charge rate and charge years.
- Press calculate to show the result above the form.
- Review the graph, yearly table, and export files.
Frequently Asked Questions
1) Is this result an official policy illustration?
No. This tool gives an educational estimate. Official insurer illustrations can use different assumptions, fees, dividend methods, riders, loan terms, and guaranteed schedules.
2) Why does net surrender value differ from gross cash value?
Gross cash value shows accumulated policy value. Net surrender value subtracts outstanding loans and surrender charges. That makes it closer to the amount potentially available if the policy is surrendered.
3) Are dividends guaranteed in whole life insurance?
No. Dividends are usually not guaranteed. They depend on insurer experience and declared scales. This calculator treats dividends as an illustrative annual rate.
4) What does the loan section change?
Policy loans reduce accessible value. Unpaid balances can grow with interest. That lowers the projected net surrender value, even if gross cash value continues to rise.
5) What is a break even age here?
It is the first projected age where net surrender value equals or exceeds total premiums paid. It gives a simple recovery milestone for the estimate.
6) Can I set premium payments to stop early?
Yes. Use the premium payment years field. The calculator stops adding future premiums after that period, while existing cash value can still grow.
7) Why are early year surrender values lower?
Many policies have early charges and limited liquidity. This calculator reflects that through surrender charge rate and surrender charge years inputs.
8) Which inputs matter most for long term growth?
Premium size, payment duration, guaranteed growth, dividends, fees, and loans usually have the biggest impact. Small rate changes can noticeably affect long term projections.