1. 61667 POINTS
    Steve Savant
    Syndicated Financial Columnist, Host of the weekly talk show Steve Savant's Money, the Name of the Game, Scottsdale Arizona
    Cash value life insurance is generally permanent life insurance that accumulates cash values by four basic crediting methods: participating whole life dividends interest rate crediting, indexed crediting and separate subaccounts that use equity and bond instruments. All cash value policies have expenses associated with them as well as surrender charges.
    Answered on August 15, 2013
  2. 37376 POINTS
    David G. Pipes, CLU®, RICP®
    Business Development Officer, T.D. McNeil Insurance Services, Fresno, California
    In order to provide a level death benefit for a level premium, whole life insurance policies accumulate cash value to offset the increasing cost of providing coverage.  The companies are willing and bound by contract to exchange their promise for coverage for the cash value of the policy.  That cash value can be received in several ways and need not be a lump sum.
    Answered on May 28, 2014
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