Cash Value
The savings component inside certain permanent life insurance policies.
What You Need to Know
Cash value accumulates inside whole life, universal life, and other permanent policies. It grows tax-deferred and can be borrowed or withdrawn, but the growth is slow and fees are high.
Think of it as a conservative side account built into your policy—not a replacement for investing in higher-growth assets.
Sources & References
This information is sourced from authoritative government and academic institutions:
- naic.org
https://www.naic.org/documents/consumer_guide_life_insurance.pdf
Related Calculators & Tools
Put your knowledge into action with these interactive tools:
Related Terms in Healthcare & Insurance
ADLs (Activities of Daily Living)
Six basic self-care tasks—like bathing and dressing—that determine long-term care eligibility.
Any Occupation
Disability coverage that only pays benefits if you cannot work in any reasonable job based on your experience and education.
Assisted Living
Housing for people who need help with daily tasks but not round-the-clock medical care.
Beneficiary
The person, trust, or organization that receives the life insurance payout.
Benefit Period
How long your disability insurance will pay benefits once a qualifying claim is approved.
DIME Method
A rule of thumb for estimating life insurance needs: Debt, Income, Mortgage, Education.