1. 5082 POINTS
    J Paul Wilson CFP, CHFC
    Certified Financial Planner, JPW Insurance Retirement Investments, Halifax, Nova Scotia, Canada
    Which life insurance has cash value? Typically whole life and universal life polices have cash value, although some term policies also have a guaranteed cash value.

    The cash value is essentially a byproduct of keeping the premium level. You pay more up front, so the build up of cash and its growth reduces the company's amount at risk.

    How the cash value is calculated, how much is guaranteed and how much (if any) is variable, depends on the design of the policy. This is spelled out in the policy wording.

    If you have further questions, or feel that I could be of assistance, please do not hesitate to contact me.

    If you would like to work with a local life insurance broker, you could start with a Google search. For example, if you search for: life insurance broker Halifax or life insurance agent Halifax, my name, along with several others, will come up. You can use the same method to find a life insurance broker in your community.

    Answered on May 10, 2014
  2. 21750 POINTS
    Jim Winkler
    CEO/Owner, Winkler Financial Group, Houston, Texas
    That is a great question! There are basically two types of life insurance policies, term and whole life. term policies last for a certain amount of time, and then end. They have no benefits after that point. The other type, whole life, lasts as long as you do. These policies have a feature that allows the policy to accumulate a cash value. That cash value is available for borrowing, or helping defray the cost of the insurance policy. I hope that helps, if you would like more information, pleas feel free to contact me, okay? Thank you!
    Answered on May 10, 2014
  3. 4249 POINTS
    Gary Lane
    President, Lane Independent Agency, Southern California
    Cash value comes with only with life insurance that accumulates value, not with term life insurance. This means you want a permanent policy, such as whole life, or universal life, or indexed universal life. All of these permanent policies accumulate cash value, in different amounts and based upon different reference points. The absolute safest is whole life. Index UL is in the middle and Universal has the most chance of change in accumulation, based upon what it relies upon. You should meet with an experienced life insurance agent to give yoU the full picture. Thank you. GARY LANE
    Answered on May 12, 2014
  4. 37376 POINTS
    David G. Pipes, CLU®, RICP®
    Business Development Officer, T.D. McNeil Insurance Services, Fresno, California
    Guaranteed cash values is a feature of a permanent life insurance policy. Other forms of life insurance might accumulate money but those amounts are not guaranteed. Cash values accumulate income tax free. The company will exchange the policy of insurance for the cash value anytime that the owner of the policy desires.
    Answered on May 14, 2014
  5. 5877 POINTS
    Stan Cox II
    Insurance Adviser - Broker, SC Insurance Services, Oahu, Hawaii
    All the answers above are valid. Term insurance Never has "cash value", but you may be able to buy a "Return of Premium" rider with a Term policy that will return most of the premium paid at the termination of the policy. And that without interest.

    Universal policies may accumulate some cash value after the first several years, but unless the amount of premium is increased to keep pace with the increasing "cost of insurance" that cash value will be consumed and the policy lapse with no value at all.

    Whole Life policies have a guaranteed minimum interest paid into a cash value of the policy and this interest is compounded and grows tax-free. You have access to the cash value also tax-free. You may also use the cash value as a future income source for retirement. The best Cash Value policies are the Participating Whole Life policies with Mutual companies. These are eligible for Dividends on top of the guaranteed interest and will grow the cash value much faster.
    Answered on November 30, 2015
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