What Is Guaranteed Cash Value For Life Insurance?

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    J Paul Wilson CFP, CHFC
    Certified Financial Planner, JPW Insurance Retirement Investments, Halifax, Nova Scotia, Canada
    The guaranteed cash value in a life insurance policy is a byproduct of levelized premium. The risk of dying increases as you get older and when you pay a level premium the insurance company sets aside some of the premium to offset the risk as you get older. The guaranteed cash value is this reserve.
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    Answered on September 6, 2014
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