This is a class of life insurance that develops a cash value. Cash value policies have a premium that are generally higher then term insurance in early years and a lower in later years. This additional premium is accumulated inside the policy at an interest rate and is tax preferenced. It is also referred to as permanent insurance because it is designed to remain inforce for an individual's full life. This is compared to term insurance which becomes prohibitively expensive at older ages. These variations are as follows: Interest Sensitive Whole Life, Universal Life Insurance, Universal Variable Life Insurance, Variable Whole Life Insurance and, Whole Life Insurance.
Cash value life insurance, or permanent life insurance, is life insurance in which a portion of the premium you pay will be put into a savings or other investment account on behalf of your policy. See also: cash value, cash surrender value, and permanent life insurance.
Is life insurance which accrues financial worth during its existence.