Available Cash Value
Available cash value is the portion of your policy's cash value that is accessible for a new policy loan, given the carrier's maximum LTV limit.
Formula: Available Cash Value = (Cash Value × Max LTV%) − Current Loan Balance
For example, if your cash value is $200,000, your carrier's maximum LTV is 90%, and you have $80,000 in outstanding loans, your available cash value is ($200,000 × 0.90) − $80,000 = $100,000.
Available cash value represents your current borrowing capacity — how much additional capital you could deploy right now. Policy Stack displays this figure on your policy detail page as a calculated value.
"Available cash value" is the correct term in whole life banking. Avoid "available balance" — policy cash value is not a bank account balance.
Related terms: Cash Value, Loan-to-Value (LTV), Policy Loan, Capital Deployment