In simple terms, permanent life insurance requires premiums higher than what it takes to cover the cost of the death benefit. The surplus premium creates a "cash value" that grows over time.
The cash value can be comprised of a guaranteed value plus a non-guaranteed component such as excess interest or dividends.
The best way to see how cash value might work for you is to ask an agent for an "illustration" showing how the policy might work on a year by year schedule.
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The cash value can be comprised of a guaranteed value plus a non-guaranteed component such as excess interest or dividends.
The best way to see how cash value might work for you is to ask an agent for an "illustration" showing how the policy might work on a year by year schedule.