What Is Meant By Cash Value Of Life Insurance?

  1. 12689 POINTS
    Ted Ratliff
    Owner, SFS Associates,
    The cash value of life insurance is the amount of equity built up in a Whole Life or Universal Life Plan.  Whole Life is designed to equal out insurance costs over the average life span.  You pay more than term in the early stages but much less as you get older.  The excess premium in the early stages allows the insurance company to invest the funds.  After expenses, cash value is accumulated in the policy according to a schedule found in the policy.
    Answered on May 7, 2013
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