What Is Fund Value In Life Insurance? 
When talking about cash value in life insurance policies it is important to differentiate between the policy value and the surrender value . For example , in a universal life insurance policy the policy value -LRB- or fund value -RRB- would be the accumulated cash value which is earning interest . However , almost all universal life insurance policies have a decreasing surrender charge schedule . This means that if you were to surrender the policy in the early years the surrender charge could reduce most -LRB- or all -RRB- of the value you receive . The value you would receive is called the net surrender value , because it is net of all charges . At some point , say 10 or 20 years down the road , the surrender charges will go away and the policy value will equal the net surrender value . This is part of the reason why cash value life insurance should always be looked at as a long term proposition . 