What does Amount at Risk mean? Read on to discover the definition & meaning of the term Amount at Risk - to help you better understand the language used in insurance policies.
Amount at Risk
Amount at risk refers to the amount of money that a life insurance company will have to pay out in death benefits if a policyholder dies, after the cash value has been taken out. This value is typically calculated by subtracting the accumulated cash value of the policy from the total death benefit that the policy offers to the policyholder.
We hope the you have a better understanding of the meaning of Amount at Risk.