This module focuses on the underlying worth of an insurance contract, the policy value in the context of a multi-decrement framework. Using this framework, we consider mortality and policy lapsation as two decrements. We introduce cash values, a benefit to the policyholder in the event of surrender and trace the value of the policy through the idea of an asset share. We then discuss the evolution of costs associated with obligations and the profits that arise over time. Finally, we examine the effect of the incidence and timing of expenses on statutory reserves.