Cash-Value Life Insurance

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Dictionary Says

Definition of 'Cash-Value Life Insurance'

A type of life insurance policy that pays out upon the policyholder's death, and also accumulates value during the policyholder's lifetime. The policyholder can use the cash value as a tax-sheltered investment (the interest and earnings on the policy are not taxable), as a fund from which to borrow and as a means to pay policy premiums later in life, or they can pass it on to their heirs. Whole life, variable life and universal life are all types of cash-value life insurance. Cash-value insurance is also known as permanent life insurance because it provides coverage for the policyholder's entire life.

Investopedia Says

Investopedia explains 'Cash-Value Life Insurance'

The other major category of life insurance is called term insurance, because it is generally in force only for a period of 10 to 30 years or until the policyholder cancels it. Cash-value insurance has higher premiums than term insurance because part of the premium pays for the death benefit coverage and part of it goes toward the policy's cash value. Cash-value life insurance is often criticized because investment options may be limited and not as good as what an investor could get on his or her own.

 

 

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'Cash-Value Life Insurance'

  • Cashing In Your Life Insurance Policy

    http://www.investopedia.com/articles/pf/08/life-insurance-cash-in.asp
    ... Nevertheless, if other options are not available, life insurance, especially
    cash-value life insurance, can be a source of needed income. ...

  • Indexed Universal Life: Cash, Flexibility And Safety

    http://www.investopedia.com/articles/insurance/09/indexed-universal-life-insurance.asp
    ... is paid, a portion pays for annual renewable term insurance based on the life of
    the insured. Any fees are paid, and the rest is added to the cash value. ...

  • Life Insurance: How To Get the Most Out Of Your Policy

    http://www.investopedia.com/articles/pf/06/lifeinsurance.asp
    ... life insurance policies, if you fail to pay the premiums in the grace period, you
    won't lose your life insurance - your accumulated cash value will come to ...

  • Variable Vs. Variable Universal Life Insurance

    http://www.investopedia.com/articles/pf/07/variable_universal.asp
    ... Taxes and Variable Life As in permanent life policies, the cash value of a
    variable life insurance policy grows on a tax deferred basis. ...

  • What is variable life insurance?

    http://www.investopedia.com/ask/answers/08/variable-life-insurance.asp
    ... The appeal to variable life insurance lies in the investment element available in
    the policy and the favorable tax treatment of the policy's cash value growth. ...

  • Series 26 Study Guide - Variable Contracts - Variable Life ...

    http://www.investopedia.com/exam-guide/series-26/variable-contracts/variable-life-insurance.asp
    ... Policy Loans Like most forms of permanent life insurance, variable life insurance
    offers policy loans on a portion of the cash value buildup in the policy. ...

  • Permanent Life Policies: Whole Vs. Universal

    http://www.investopedia.com/articles/pf/07/whole_universal.asp
    ... up your cash value. For this reason, permanent life insurance is also
    known as cash value insurance. The most important feature ...

  • 5 Mistakes That Can Ruin Your Life (Insurance)

    http://www.investopedia.com/articles/pf/08/five-insurance-mistakes.asp
    ... When accessing your life insurance policy's cash value, be sure to monitor it closely
    and consult your tax advisor for guidance to avoid any unwanted tax ...

  • Series 6 Study Guide - Variable Contracts - Variable Life ...

    http://www.investopedia.com/exam-guide/finra-series-6/variable-contracts/variable-life-insurance.asp
    ... Policy Loans Like most forms of permanent life insurance, variable life insurance
    offers policy loans on a portion of the cash value buildup in the policy. ...

  • Life Insurance: Putting A Price On Peace Of Mind

    http://www.investopedia.com/articles/pf/05/012405.asp
    ... of term life insurance: Temporary insurance protection; Low cost; No cash value;
    Usually renewable; Sometimes convertible to permanent life insurance. ...

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