When it comes to Life Insurance policies, what does Cash Value mean?
Cash value life Insurance A life insurance policy which in addition to providing a benefit upon the death of the policy holder, also accumulates cash value over time enabling benefits to be paid out before death. For someone here to tell that cash value life insurance is a rip off or to compare the cash value to a savings account is like comparing a money market fund to an aggressive growth fund. The money market will earn way less than the growth fund but does that mean the money market is a rip off? No they are different vehicles with different objectives. Cash Life Insurance is the only way you can guarantee a death benefit to your beneficiary for your entire lifetime whether you die next week or at age 95. The cash value is part of your death benefit and is the only way the insurance company can keep your premiums level for your entire lifetime. Look at it like this you and the insurance company work together to make sure your beneficiaries get the full death benefit. If you die ea
