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.
A type of life insurance that provides coverage throughout the insured's lifetime and builds cash value. Premium amounts and payment schedules may be fixed or flexible, according to the contract.
A permanent insurance policy that builds cash value, often described as a savings account within the policy. Cash value life insurance differs from term insurance, where premiums purchase pure insurance protection only.
A type of insurance where premiums charged are higher at the beginning than they would be for the same amount of term insurance. The part of the premium that is not used for the cost of insurance is invested by the company and builds up a cash value that may be used in a variety of ways. You may borrow against a policy's cash value by taking a policy loan. If you don't pay back the loan and the interest on it, the amount you owe will be subtracted from the benefits when you die, or from the cash value if you stop paying premiums and take out the remaining cash value. You can also use your cash value to keep insurance protection for a limited time or to buy a reduced amount without having to pay more premiums . You also can use the cash value to increase your income in retirement or to help pay for needs such as a child's tuition without canceling the policy. However, to build up this cash value, you must pay higher premiums in the earlier years of the policy. Cash value life insurance may be one of several types; whole life, universal life and variable life are all types of cash value insurance.