Cash Value Explained
Cash Value Explained
How permanent life insurance builds value for you while it protects your family.
5 min read
Start with a question
How can cash value support your long-term goals?
In plain language
Cash value is the living benefit of permanent life insurance. As you pay premiums, part of your money builds value inside the policy and earns interest according to your contract — in an IUL, linked to a market index.
You can use your cash value later through policy loans or withdrawals for goals like education, emergencies or supplemental income, while your policy keeps protecting your family.
- 1
You pay your premium
- 2
Policy costs are covered
- 3
Interest is credited
- 4
Your cash value grows
A practical example
Example
Rosa uses part of her cash value to help pay for her daughter’s first year of college, and her policy keeps protecting her family. She plans the amount with her licensed professional.
Keys to get the most from it
- Fund your policy consistently to keep your cash value growing.
- Plan loans and withdrawals with your licensed professional.
- Review your annual statement to track your progress.
Common questions
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