What is Cash Value?

Question: What is Cash Value?

Answer: Cash value is the savings portion of your permanent life insurance policy. Provided that premiums have been paid as scheduled, cash value is funded through premium payments and interest. Cash value can be accessed by a policyholder through a loan or through withdrawal (as cash surrender value). Loans taken against cash value are deducted from the death benefit, the insurance benefit received by beneficiaries, and withdrawals are subject to surrender charges.