You want clear answers about how a MetLife cash-value-life-insurance-metlife plan works so you can protect loved ones today and build a legacy for tomorrow.

This FAQ-style guide gives practical explanations you can act on right away. You will learn what cash value is, how it grows, and how it pairs with the death benefit to provide lifelong protection and flexible access.

We will show where to find key figures on your annual statement, including cash value and cash surrender value, so you know what you own. You will also get plain-English details on policy loans, interest, and how borrowing affects long-term results results results for your coverage.

The guide explains surrender value versus death benefit and why carrying a loan balance can lower what beneficiaries receive. You will find straightforward tax notes, reinstatement steps if a policy lapses, and a simple checklist to review your plan.

Key Takeaways

  • Understand how cash value grows and ties to the death benefit.
  • Learn where to read cash and surrender values on statements.
  • Know how policy loans and interest affect long-term results results.
  • See tax basics: cost basis, tax-free withdrawals, and taxable loan outcomes.
  • Find steps to request reinstatement and keep coverage active.
  • Use the final checklist to review dates, values, and next actions.

What is a MetLife cash value life insurance policy and how can it help you build a legacy?

Think of this plan as two linked pieces: a guaranteed payout for your loved ones and a savings component that can grow while you live.

You own a life insurance policy with two core components: a reliable death benefit for beneficiaries and a cash value account that can fund loans or withdrawals for college, retirement gaps, or emergencies.

The policy value is more than one number. Cash value, surrender value, and the paid death benefit interact. Your choices—how much you fund, whether you borrow, or if you withdraw—change those figures over time.

Generally speaking, keeping premiums current and using cash thoughtfully helps preserve the value death benefit you intend to leave.

  • Use cash value for short-term needs without surrendering protection.
  • Remember surrender value reflects fees and any outstanding loans.
  • Coordinate beneficiaries and trusts to maximize legacy outcomes.

Understanding policy values today: cash value, cash surrender value, loans, and the death benefit

Your annual statement is the clearest snapshot of current policy values. Open the summary to find cash value, cash surrender value, and the paid death benefit at a glance.

Where to find your current policy values and cash surrender value in your annual statement

Look for a summary section near the front of the annual statement. It lists current policy values and shows how the cash surrender value was calculated.

Review annual statement line items that show premiums, credits, and charges so you see what changed since the last policy anniversary date.

How policy loans work: added loan principal, loan interest, and unpaid interest

When you take a policy loan, you create loan principal that reduces the policy cash available. The statement shows the outstanding loan principal and the loan interest rate.

If loan interest is not paid, unpaid interest may be capitalized as added loan principal. That increases future loan interest and can compound quickly.

Surrender value vs. death benefit: how the value death benefit may be affected by outstanding loans

Surrender value reflects charges and any policy cash surrender loans. Large loans reduce surrender value and can lower the net amount paid to beneficiaries.

Tip: Mark your policy anniversary date on your calendar to review the annual statement, confirm beneficiaries, and check loan illustrations before borrowing.

  • Request interim values if you need a current snapshot between annual statements.
  • Compare surrender value and death benefit before taking withdrawals or loans.
  • Watch how added loan principal and loan interest affect long-term policy value.

Taxes and your cash value: cost basis, withdrawals, and when loan plus interest can be taxable

Taxes change how much of your policy’s savings you can use tax-free, so start by knowing your cost basis.

Cost basis explained: Your cost basis equals the total premiums you paid minus prior nontaxable distributions. Withdrawals up to that number are generally not taxable, and policy loans are not taxed when you receive them.

When a taxable gain can occur

Generally speaking, a taxable gain may arise if the policy matures, is surrendered, or is terminated for reasons other than a death benefit payment.

At that time, the outstanding amount loaned against the policy — including any unpaid interest — is treated as if you received it. If the loan plus interest exceeds your cost basis, that excess is taxable.

IRS reporting and what to expect

MetLife must report amounts that exceed your cost basis under IRS rules. You’ll receive forms showing taxable gain when it occurs.

  • Know your cost basis to plan tax-free withdrawals.
  • Monitor the amount loan outstanding and unpaid interest so you avoid unintended tax.
  • Factor taxes into choices about surrender value versus loans or withdrawals.

Tip: Pay loan interest from outside the policy when possible to prevent unpaid interest from compounding the balance and creating taxable results results later.

If your policy lapses: reinstatement steps, payments due, and keeping your coverage

If your policy lapses, you may be able to restore coverage by following a clear reinstatement process laid out in your notice.

reinstatement process

Reinstatement process: letter, application, amount due, and paying the next two monthly charges

You will receive a letter if you are eligible to reinstate. That letter states the amount needed to reinstate and includes an application.

Return the completed application with payment by the deadline. The amount required will cover the next two monthly charges once payment is received.

Tip: If your packet is missing, please contact us to confirm eligibility and the amount due.

After approval: planned premium payments, possible premium increase, or reducing coverage

If your reinstatement is approved, resume your planned premium payments. You may need to increase premiums or reduce the amount of life insurance to keep coverage in force.

If the application is incomplete or not approved, your payment will be refunded. Ask how outstanding loans or unpaid charges were handled during the lapse and how reinstatement will affect surrender value and cash surrender value.

  • Set reminders or automatic payments to avoid future lapses.
  • Request an updated in-force illustration to compare premium and cash surrender scenarios.
  • If you misplaced your notice, please contact us or click customer support to get the number and latest correspondence details.

Conclusion

A clear annual review and cautious borrowing let you use policy cash without jeopardizing long-term results. Keep your routine simple: check the annual statement, confirm the cash value and cash surrender value, and note any outstanding loan principal.

Act consistently. Maintain funding for your life insurance policy, review updated in‑force illustrations yearly, and watch loan interest so it does not erode the death benefit.

Protect the legacy. Coordinate beneficiaries and estate plans, pay loan interest from outside when possible, and revisit coverage after major life events. When in doubt, seek financial or tax advice to align your policy value with family goals.

FAQ

What is a MetLife cash value life insurance policy and how can it help you build a legacy?

A MetLife cash value policy combines a death benefit with a savings component that grows over time. You can use the policy to provide for loved ones after you die, pay estate expenses, or transfer wealth. The cash accumulation may offer flexible options—withdrawals, loans, or reduced paid-up coverage—that help you preserve value while still offering a death benefit to beneficiaries.

Where do you find your current policy values, including cash surrender value, on your annual statement?

Your annual statement lists key amounts: the cash value (policy value), the cash surrender value, any outstanding loan principal plus unpaid interest, and the death benefit. Look for sections labeled “Policy Values,” “Surrender Values,” or “Account Summary.” If you can’t locate these figures, contact customer support or check the latest correspondence and your policy anniversary statement for the numbers.

How do policy loans work and how do added loan principal and loan interest affect your policy?

When you take a policy loan, the insurer records loan principal and charges interest. Interest can be paid out of pocket or left unpaid, which then accrues as unpaid interest and increases the loan balance. That larger loan reduces the policy’s available surrender value and reduces the death benefit by the outstanding loan plus interest if not repaid before a claim.

What is the difference between surrender value and death benefit, and how can outstanding loans affect the death benefit?

The surrender value is the amount you receive if you terminate the policy, after any surrender charges and outstanding loans. The death benefit is the amount paid to beneficiaries when you die. Outstanding loans and unpaid interest generally reduce both the surrender value and the death benefit by the full loan balance if not repaid.

What is cost basis and how is it calculated for your policy?

Cost basis is generally the total premiums you’ve paid into the policy minus any prior nontaxable distributions, such as certain withdrawals. Cost basis determines whether a withdrawal or surrender creates taxable gain; amounts up to the cost basis are usually tax-free.

When could a taxable gain occur at maturity, surrender, or termination of your policy?

A taxable gain typically occurs when the amount you receive exceeds your cost basis. That can happen on surrender, policy maturity, or termination. Also, if a loan is forgiven or the policy is exchanged in a taxable transaction, you may have taxable income. Consult a tax advisor for specifics to your situation.

How does MetLife report amounts that exceed your cost basis to the IRS?

When taxable amounts occur, MetLife reports them on the appropriate IRS forms and sends you a copy. Typically, taxable distributions or gains are reported on forms such as 1099-R. Review the insurer’s reporting and your tax statements each year and keep your own records of premiums, withdrawals, and loans.

What steps must you take to reinstate a lapsed policy, and what documentation and payments are required?

To reinstate, you generally submit a written request or application, provide any required medical or financial information, and pay the amount due to restore the policy. This often includes past-due premiums plus interest; insurers may require payment of the next one or two monthly charges. Follow the reinstatement letter instructions and include any requested forms.

After reinstatement, what should you expect about ongoing premium payments or possible changes to coverage?

After approval, you resume planned premium payments. Depending on your policy and how long it lapsed, premiums could increase, or the insurer may offer options to reduce face amount to keep coverage affordable. You can also discuss alternative payment plans or conversion options with customer support to retain some level of protection.

If you can’t find results or specific values in your documents, what should you do next?

If you can’t find policy values or other details in your annual statement or latest correspondence, try searching using fewer terms or different keywords such as “surrender value,” “policy loan balance,” or “death benefit.” If results still don’t match, contact MetLife customer service and provide your policy number and the date of the latest correspondence so they can pull current policy values and explain them to you.