Does A Whole Life Insurance Policy Have A Cash Value?

Comments

3 responses to “Does A Whole Life Insurance Policy Have A Cash Value?”

1. 

   February 4, 2015

   David G. Pipes, CLU®, RCIP®

   Because a whole life policy is designed to last a lifetime at a level premium it develops a reserve or cash value. In the early years of the policy the premium will be higher than a similar term policy; however, in later years it will be lower. That cash value can be used to provide collateral for a “policy loan.” It is the surrender value of the policy.
2. 

   December 1, 2014

   Tim Wilhoit

   Yes, whole life does accumulate a cash value. However, depending on how your life insurance agent set up your premiums it can take a few years. Usually the first 5 to 7 years are paying for the cost of insurance and the cash will accumulate very slowly in early years. There is a page in your whole life policy called the illustrations page. This is a chart of cash value from year to year of the cash value accumulation.
3. 

   November 30, 2014

   Gary Lane

   Absolutely. Wait a year or two and it will accumulate value. That is a major reason folks go with whole life. Another variation is a permanent equity indexed universal life policy. They accumulate value, usually at a much higher rate, and with the right one, they never go down, since they have a guarantee of zero loss each year. Only a few firms offer these. You should talk with your agent. Thank you. GARY LANE.