How Does Life Insurance Cash Value Work?

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   David Osgood

   Agent, Rural Mutual Insurance Co., Union Grove, WI

   Some life insurance policies have a value that can be taken if the policy is surrendered or that can be taken as a loan. The cash value of the policy typicaly accumulates over the lifetime of the policy. If money is taken out of the policy as a loan it typically will lessen the death benefit of the policy and normally requires you to repay the loan within a set period of time or other consequenses can arise by not repaying the loan. There can be fees involved in this process. Be aware there are many different policies out there. To find out more about the cash value availablity within your policy, read your policy completely or contact your local agent to have them explain the details of your policy.

   Answered on April 20, 2013

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