What Is The Cash Value Of A Life Insurance Policy at Life

What Is The Cash Value Of A Life Insurance Policy. The total amount of premiums that have been paid into the policy are also taken into consideration when valuing a policy. Cash value life insurance is a type of permanent life insurance that includes an investment feature.

Cash value life insurance is a form of permanent life insurance—lasting for the lifetime of the holder—that features a cash value savings component. As you age, more of the premium goes to your actual insurance costs. If you can afford the high insurance premiums, then cash value life insurance is a wise investment for you.

Whole Life Insurance A Firm Financial Foundation

That cash value grows at a rate dictated by the type of policy the individual purchased. As you pay premiums on a permanent life insurance policy, you can build cash value—a kind of separate account within the policy (or an annuity). The cash value of a life insurance policy is value that your policy has accumulated since the policy issue date. The policyholder can use the cash value for.