Net cash value (Net Cash Value) is the cash value of your policy minus any outstanding loan balance. It represents your actual equity position in the policy.
Formula: Net Cash Value = Total Cash Value − Loan Balance
For example, if your policy has $200,000 in cash value and you have $60,000 in outstanding policy loans, your net cash value is $140,000.
Net cash value is the more useful figure when assessing the real position of your banking system. Total cash value shows the gross accumulated growth; net cash value shows what remains after accounting for capital deployed via loans.
Net Cash Value vs. Cash Surrender Value
Carrier statements sometimes label a value "Cash Surrender Value." This can refer to two different things:
- Net cash value — Total CV minus the loan balance. This is what Policy Stack means by Net Cash Value.
- Surrender value with early-surrender charges — A lower figure shown in the early years of some policies when the carrier deducts surrender charges. This applies only if you were to cancel the policy and walk away.
If your statement's "Cash Surrender Value" is lower than you would expect from simply subtracting loans from total cash value, it likely includes surrender charges. In Policy Stack, enter the loan-adjusted figure (Total CV minus Loan Balance) as Net Cash Value — or enter Total CV directly and let Policy Stack calculate Net Cash Value from the loan balance.
Recording in Policy Stack
When recording snapshots, you only need to enter one of Total CV or Net Cash Value — the system derives the other automatically using the loan balance. On your policy detail page and dashboard, net cash value is displayed as a calculated value carrying a data source label.