Which values are guaranteed?
Use this as a checkpoint before comparing carriers or signing an application.
Insurance terms
Cash value
The living value inside certain permanent life insurance policies.
Definition
Cash value
Cash value is value inside certain permanent life insurance policies, including whole life insurance. It may be accessed during life through withdrawals or policy loans, subject to policy terms.
- Why it mattersCash value is often misunderstood because it is not a bank account and not a separate market account. It is part of an insurance contract, so access, guarantees, loans, taxes, and long-term effects need to be read carefully.
- What it is notThis is not a quote, approval, recommendation, or policy promise. The exact meaning depends on the contract and carrier.
- Where to confirm itAsk to see the policy language, rider language, illustration, or contract page that controls this term.
Questions to ask.
A good broker conversation should turn a definition into a practical policy decision.
How do policy loans affect the death benefit?
Use this as a checkpoint before comparing carriers or signing an application.
What happens if premiums are missed?
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What does the illustration assume?
Use this as a checkpoint before comparing carriers or signing an application.
Related reading.
Keep the explanation connected to the product you are comparing.