Cash Value guarantees in a whole life policy are referred to as what?

In the context of a whole life insurance policy, cash value guarantees are referred to as non-forfeiture values. This term is significant because it represents the policyholder's ownership rights in the cash value component of the policy, which accumulates over time. Non-forfeiture values ensure that if the policyholder decides to stop paying premiums or surrenders the policy, they are entitled to receive a specific value, thereby providing a safety net.

This reflects the fundamental characteristic of whole life insurance, which combines both a death benefit and a cash value. The cash value grows at a guaranteed rate and can be accessed during the life of the insured, either as a loan or through surrendering the policy.

Other options such as withdrawal options, while they may seem relevant to the cash value, do not encompass the broader aspects of guarantees provided under non-forfeiture values. Investment returns are not typically applicable to whole life policies as they relate more to variable life insurance or other investment-based products. Premium adjustments do not pertain to the cash value but rather to changing the premium payments in relation to the coverage provided. Thus, non-forfeiture values accurately encapsulate the guaranteed aspects of cash value in a whole life policy.