Amount at risk

{
  "id": "MLC-T-INS-000420",
  "term": "Amount at risk",
  "field": "Insurance and risk management",
  "definition": "The difference between a life insurance policy's death benefit and its cash value, which is the sum the insurer would pay from its own funds if the insured died. The amount at risk falls as cash value builds, and it is the base on which cost of insurance charges are calculated in universal life. Outside life insurance, the term means the value of an asset exposed to a peril, less any coverage.",
  "url": "https://mlchart.com/terminology/insurance/amount-at-risk/"
}