The difference between the value of a permanent life insurance policy and the policy's cash value to date. For example, if a life insurance policy is worth $250,000 at face value, and the cash value is $50,000, the amount as risk is $200,000. The $200,000 represents the amount that the insurer would have to pay to the policy holder if the insured party dies.
Related information about amount at risk:
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The monetary difference between the death benefit paid by a permanent life insurance policy and the accrued cash value. For example, if a policy's death benefit ...
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Amount At Risk 1. difference between the face value of a permanent life insurance policy and its accrued cash value.
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Oct 12, 2005 ... It is similar to the Basis Limitation, in that one of the major components of the “ Amount At-Risk” is the amount invested in the activity. Under the ...
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Definition of amount at risk: The difference between the value of a permanent life insurance policy and the policy's cash value to date. For example, if a life ...
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Also known as the "net amount at risk" or NAR, this term refers to the difference between a permanent life insurance policy's face value and the cash value it has ...
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