cash value: meaning, definition, pronunciation and examples
C1Formal / Technical
Quick answer
What does “cash value” mean?
The monetary amount for which something can be immediately sold or exchanged for cash.
Audio
Pronunciation
Definition
Meaning and Definition
The monetary amount for which something can be immediately sold or exchanged for cash.
In insurance contexts, the savings portion of a permanent life insurance policy that can be borrowed against or withdrawn. More broadly, the immediate tangible worth of something as opposed to its potential or intrinsic value.
Dialectal Variation
British vs American Usage
Differences
No significant difference in core meaning. The term is used identically in both financial and insurance contexts. Spelling of 'cash value' remains the same.
Connotations
Neutral and technical in both varieties.
Frequency
Equally common in both UK and US financial and insurance sectors.
Grammar
How to Use “cash value” in a Sentence
[to have] a cash value of [AMOUNT][to surrender/withdraw/borrow] the cash value [of a policy]the cash value [accrues/grows]Vocabulary
Collocations
Examples
Examples of “cash value” in a Sentence
verb
British English
- The insurer will cash-value the policy upon surrender.
- We need to cash-value these assets promptly.
American English
- The policy cash-values over time.
- They decided to cash-value the old annuity.
adjective
British English
- He received a cash-value assessment report.
- The cash-value option is less favourable.
American English
- She reviewed the cash-value statement.
- It's a cash-value life insurance product.
Usage
Meaning in Context
Business
The business was assessed for its cash value prior to the acquisition.
Academic
The study compared the cash value of assets against their book value over a 20-year period.
Everyday
I checked the cash value of my old coins at the pawn shop.
Technical
The policyholder can take a loan up to 90% of the policy's accrued cash value.
Vocabulary
Synonyms of “cash value”
Vocabulary
Antonyms of “cash value”
Watch out
Common Mistakes When Using “cash value”
- Using 'cash value' interchangeably with 'face value' (e.g., of a bond or ticket). Confusing 'cash value' with 'replacement value' in insurance.
FAQ
Frequently Asked Questions
Not exactly. 'Market value' is the estimated price in an open market. 'Cash value' often implies the actual amount you would receive in a quick, guaranteed sale (like surrendering an insurance policy), which may be lower than the market value.
Yes, typically you can withdraw it or take a loan against it, but doing so will reduce the death benefit and may have tax implications.
No, while it's a technical term in insurance, it can be used more broadly for any asset to mean its immediate monetary worth if converted to cash.
In insurance, they are often synonymous. However, 'surrender value' is specifically the amount paid when you terminate the policy, which is the cash value minus any surrender charges.
The monetary amount for which something can be immediately sold or exchanged for cash.
Cash value is usually formal / technical in register.
Cash value: in British English it is pronounced /ˈkæʃ ˌvæl.juː/, and in American English it is pronounced /ˈkæʃ ˌvæl.juː/. Tap the audio buttons above to hear it.
Phrases
Idioms & Phrases
- “take the cash and let the credit go (related concept)”
Learning
Memory Aids
Mnemonic
CASH VALUE = what's in your hand RIGHT NOW. Think: 'Cash in hand' for its immediate value.
Conceptual Metaphor
VALUE IS A LIQUID (e.g., 'cash value is accessible', 'it can be tapped')
Practice
Quiz
In which context is 'cash value' used most specifically?