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How Life Insurance Cash Value Works

Permanent policies can build cash value over time. Knowing how it works helps you use it wisely.

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Steps

  1. Cash value grows inside permanent policies (whole, universal, indexed universal life).
  2. You can often borrow against it, though unpaid loans reduce the death benefit.
  3. Some policies let cash value help cover premiums.
  4. Surrendering a policy for its cash value ends the coverage — weigh this carefully.
  5. An independent agent can show you what your policy's cash value can and can't do.

Need help with this? Speak with a licensed agent for a free, no-obligation review of your life insurance policy.

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A licensed agent can walk you through every step at no cost. Life Insurance Help Now is independent, so the guidance is about what's best for you.