Whole life insurance guarantees payment of a death benefit to beneficiaries in exchange for level, regularly-due premium payments. The policy includes a savings portion, called the “cash value,” alongside the death benefit. In the savings component, interest may accumulate on a tax-deferred basis.
The cash value in a permanent life policy is considered a benefit. the information of cash value is not required in the whole life policy.
The whole life policy is permanent in nature which increases your money over a period of time. As long as you will continue your premium your policy will be active.
Cash value is only available in the whole life policy. a person can withdraw a portion of the amount from the whole life policy which he has paid off. It is nontaxable. If you cancel your premium generally there are no charges to be paid off.
Therefore cash value is an important tool of The whole life policy.
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