President, Lane Independent Agency, Southern California
If you purchase Whole Life, it grows in value, and increases the death benefit without ever increasing the cost. If you cancel that policy later for any reason, there is an amount called surrender value, that you will be paid. It can be very large. A much better solution, however, is to keep your whole life policy, letting it continue to grow, but take some money out of it, for your emergency needs. The policy will keep growing as though the money were still in it. If you never pay back the money, the death benefit will be lower, but you will still have life insurance. Even if you became uninsurable, your whole life policy will continue to be yours. Gary Lane, Registered Representative, New York Life, 949 797 2424. Thank you.
The surrender value of life insurance is the amount of cash you can take from the policy if you let it lapse, or "surrender" it. It will be the cash value of your policy, minus any fees or surrender charges. During the first years of your policy, there may be no surrender value due to these charges,
and the fact that it takes time to accumulate cash value in most life insurance policies.
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and the fact that it takes time to accumulate cash value in most life insurance policies.