Max Life Insurance uses a formula to calculate the policy value of a policyholder’s account. This formula takes into account all the money the policyholders have contributed to the policy and any applicable bonuses, depending on the type of policy chosen.
The base calculation for the policyholder’s value is the total of all premiums paid into the policy, plus any premiums waived, plus any applicable bonuses. The bonuses can be paid in either as a lump sum or in installments over time, depending on the type of policy you have.
The policy value may change depending on the performance of the markets and rates of return, as well as any charges associated with the policyholder’s account. It’s important to keep in mind that this value can be higher or lower than the original premium.
Finally, the policy value is important to consider when it comes time to surrender or withdraw from a policy. Surrender or withdrawal values will be based on the policy value at that time, as well as any applicable charges or penalties that may apply.
This is why it’s important to keep an eye on the policy value and understand how it is calculated and why it can vary over time. Knowing your policy’s value can help you make the most informed decisions about when, and how, to take advantage of the funds held in your account.