What Is A Cash Accumulation Fund Life Insurance?

  1. 4470 POINTS
    Brandon Roberts
    Owner, The Insurance Pro Blog,
    This could be a few different things, but generally speaking it's a life insurance policy with a non-forfeiture benefit (aka an ability to accumulate a cash value that can be redeemed upon policy surrender or used to provide for a degree of policy benefits if the policy holder decides he or she no longer wishes to pay the premium due on the original policy).
    Answered on November 3, 2013
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  2. 63333 POINTS
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    Peggy MacePRO
    Most of the U.S.
    When you purchase universal life insurance through a group policy, your employer may offer you a chance to put away extra cash in a cash value accumulation fund that is a part of your universal life policy. It affords you the opportunity to pay beyond your premium, to have the excess grow in a tax deferred account at a competitive interest rate. You would need to look at the illustration of projected cash accumulation, and compare it to other savings/investment plans to determine if it is a good option for you.
    Answered on November 3, 2013
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