CASH VALUE Meaning and
Definition
-
Cash value refers to the monetary worth or value of an asset or investment that can be readily converted into cash. It is the amount of money that an individual or entity would receive as a payout if they were to liquidate or sell the asset. The term is commonly used in financial and insurance sectors.
In the context of investments, cash value typically represents the actual amount of money an individual would receive upon selling or redeeming an investment such as stocks, bonds, or mutual funds. It may also refer to the value of a cash surrender of a life insurance policy or annuity. The cash value of an investment is influenced by various factors such as market conditions, demand, and the specific terms and conditions set by the issuer or institution.
In the realm of insurance, cash value pertains to the accumulated savings within a permanent life insurance policy. A portion of the premiums paid is allocated towards building the cash value over time. Policyholders may be able to borrow against or withdraw from this cash value, offering a degree of financial flexibility. The cash value of an insurance policy typically grows tax-deferred, meaning taxes on the gains are postponed until withdrawals are made.
Overall, cash value is an essential concept in finance, providing an indication of the immediate value an asset holds in terms of readily available cash.
Common Misspellings for CASH VALUE
- xash value
- vash value
- fash value
- dash value
- czsh value
- cssh value
- cwsh value
- cqsh value
- caah value
- cazh value
- caxh value
- cadh value
- caeh value
- cawh value
- casg value
- casb value
- casn value
- casj value
- casu value
- casy value
Etymology of CASH VALUE
The word "cash" originated from the Old French word "caisse", which referred to a money box or container. It later evolved into the Latin word "capsa", meaning box or case. From there, it further transformed into the Late Latin word "cassa", which signified money or coins. During the 16th century, the term "cash" was adopted in English to describe money in the form of coins or banknotes.
The word "value" has its roots in the Latin word "valere", meaning to be strong, be worth, or have power. In English, it initially derived from the Old French word "value" with similar meanings related to worth, merit, or price.
When combined, the term "cash value" represents the monetary worth, price, or equivalent value in actual money that an object or asset possesses.
Infographic
Add the infographic to your website:
