1. Peggy MacePRO
    President and Senior Agent, Outlook Life, Most of the U.S.
    Life insurance that has a cash value is called permanent insurance. Permanent insurance includes all variations of Whole Life and Universal Life. Some policies have lots of cash value; some have little to none. You need to look at the policy carefully when buying permanent life insurance. 

    Term Life insurance rarely has a cash value. Return of Premium (ROP) Term does build up some cash value in the later years of the policy.
    Answered on July 30, 2013
  2. Steve KobrinPRO
    President, The Firm of Steven H. Kobrin, LUTCF, 6-05 Saddle River Rd #103, Fair Lawn, NJ 07410
    Life insurance has cash value under the circumstances below. The thing is that depending on how you manage that cash, it can be a blessing or a curse.

    Whole life has cash value when the company pays dividends. These are not guaranteed, but are typically paid. Over time, they can add up.

    But once you use that tempting loan provision, that cash value not only goes down but so does the death benefit. Better make sure you can deal with that.

    Universal life has cash value when the company applies a high enough interest rate to the policy account. That can be higher than a lot of conservative instruments out there.

    But you can take cash out of the policy. And, you can stop paying premiums, or under pay, if you want. What do you think will happen if the interest rate goes down and you deplete the policy of cash?

    It will die an ugly death. So be careful.
    Answered on April 7, 2015
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