What is the term for the total of premiums paid into a life insurance policy minus total dividends received?

The term for the total of premiums paid into a life insurance policy minus total dividends received is referred to as the cost basis. This represents the amount of money that the policyholder has invested in the policy, which can be useful for tax purposes and in determining gains or losses if the policy is surrendered or transferred.

Understanding the cost basis is crucial because it helps policyholders comprehend their investment in the policy relative to what they may receive upon surrendering it or taking loans against the policy. It serves as a foundation for determining any taxable gain, as any amounts received beyond the cost basis could be subject to taxation.

The other terms listed relate to different concepts in life insurance. Policy value refers to the total worth of the policy including accrued values such as cash surrender value and may incorporate elements beyond just the premiums paid. Net premium is a term that describes the actual premium amount after deductions and adjustments, usually for certain expenses or risks, rather than the total investment made by the policyholder. Cash surrender value is the amount a policyholder would receive if they choose to surrender their policy before maturity, which considers factors such as unpaid premiums and cost of insurance but does not represent the total of premiums paid minus dividends.