What is Cash value?

Cash value, or account value, is equal to the sum of money that builds inside of a cash value-generating annuity or permanent life insurance policy. It is the money held in your account.

Cash value life insurance is a form of permanent life insurance that features a cash value savings component. The policyholder can use the cash value for many purposes, such as a source of loans, as a source of cash, or to pay policy premiums.

  • Cash-value life insurance is more expensive than term life insurance.

  • Unlike term life insurance, cash value insurance policies do not expire after a specific number of years.

  • It is possible to borrow against a cash-value life insurance policy.

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