Net Amount at Risk

On a permanent policy, the gap between the death benefit and the cash value — the part the insurer is actually on the hook for. It shrinks as cash value grows.

This is a friendly general explanation, not legal or policy language. Exact coverage depends on your policy, carrier, and state. 🤝

Written and reviewed by the We Insure Things team — licensed independent insurance agents. Last reviewed July 23, 2026. Questions? Ask a licensed agent.