Cash Value
Insurance Glossary
The savings component that builds inside a permanent life insurance policy such as whole or universal life. It is funded by the part of each premium not consumed by insurance costs and expenses, grows tax deferred and can usually be borrowed against or withdrawn, and surrendering the policy pays out its cash surrender value in place of the death benefit. Term life has no cash value, growth is slow in the early policy years, and an unpaid loan reduces the death benefit that beneficiaries receive.
This content is for general informational purposes only and is not insurance, legal, or financial advice. Coverage, exclusions, eligibility, and pricing vary by insurer, by policy, and by state, and only the policy documents control what is covered. Always confirm the details of any coverage with a licensed insurance agent or the issuing carrier before you buy.
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