Life
Cash Value
The savings component inside a permanent life insurance policy that grows over time.
What it actually means
Cash value accumulates inside permanent (whole or universal) life policies as a tax-deferred savings component you can borrow against or, in some cases, withdraw. It's separate from the death benefit and is one of the main reasons permanent policies cost more than term.
Example: After 15 years, a whole life policy might have built up $40,000 in accessible cash value.
See it in context
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