How Does Cash Value Life Insurance Work?
0 POINTSContact Meview profileDavid RacichPROFountain Hills, ArizonaThere are four types of permanent life insurance policies that have the potential to accumulate cash values: participating whole life, current interest rate universal life, index universal life and variable life. Participating whole life credits dividends when declared, i.e. there not guaranteed. The other three are current assumption universal life policies that can credit an interest rate, an index return or a separate sub account performance (which could be negative) with access to market equities and bonds. After the policy fee, premium load, admin expense and cost of insurance is paid, the earnings, if any, are credited to the account cash values and net premium. Keep in mind these policies generally have surrender charges applied to the cash values account in the early years of the contact.Answered on June 19, 2013+01+1 this answer
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