Over the years I’ve gotten several panicked calls from clients wondering why their available cash value is significantly lower than they thought it would be.
I get it! Something like that can be alarming. You start asking yourself, “Did I make a mistake?” or “Did I really just get scammed?” But let me put your mind at ease.
You’ve not been scammed.
The available cash value in your contract is what you will be getting. Even if your member dashboard shows something else for the time being.
Remember, these policies don’t act or function like your traditional checking account. You’re used to depositing a check and having that money immediately appear as available for use. But that’s just not how these banking policies work. You won’t see your available cash value update in seconds like you do with your checking account balance.
There are all sorts of reasons why the numbers shown on your online account can fluctuate.
Here are a few:
- There is a lag time at each insurance company between the time you pay your premium and the time it’s updated in their system. And each company’s lag time can vary.
- If it’s time for a premium payment and your premium didn’t reach them in time, they will take your premium from the cash value. When your premium does clear, it will then be updated and your account will reflect the proper amounts.
- You may only see a small amount of cash value available right away. As soon as the insurance company fully processes your premium, your full amount of available cash value will be reflected. This can take up to a few weeks.
- Some insurance companies show the total amount of cash value for your policy. But they don’t always let you borrow 100% of that amount. There may be small discrepancies between what you see is available and what you can borrow against. However, it’s usually very close to 100%.
- Some insurance companies track the interest being earned and owed daily. This can cause your numbers to change every single day.
This is not in any way a comprehensive list of all the reasons why the insurance company’s website reflects numbers that seem to fluctuate quite often. Rest assured, you have a contract with this company that they are required by law to fulfill. It just may take a few days to a few weeks for the website to accurately reflect what’s happening inside your policy.
In the meantime
Be patient and talk to those who’ve been there. There’s a reason why so many people get more than one of these banking policies. It’s because they’ve proven to do what they say they’re going to (and more)!